What changed in this filing

/stocks — the workspaceLOADING

Item 1A. Risk Factors

2026-03-27 compared with 2025-03-27 · 1365 added, 1335 removed, 173 unchanged (94% of the section changed)

The following discussion of risk factors contains

forward-looking statements.

The following discussion

of risk factors contains forward-looking statements.

These risk factors may be important to understanding other statements in this Report.

The following information

should be read in conjunction with Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results

of Operations” and the consolidated financial statements and related notes in Part II, Item 8, “Financial Statements and Supplementary

Data” of this Form 10-K.

The business, financial condition and operating

results of the Company can be affected by a number of factors, whether currently known or unknown, including but not limited to those

described below, any one or more of which could, directly or indirectly, cause the Company’s actual financial condition and operating

results to vary materially from past, or from anticipated future, financial condition and operating results.

Any of these factors, in

whole or in part, could materially and adversely affect the Company’s business, financial condition, operating results and stock

The following information should be read in conjunction with Part II, Item 7, “Management’s Discussion and Analysis of Financial

Condition and Results of Operations” and the consolidated financial statements and related notes in Part II, Item 8, “Financial

Statements and Supplementary Data” of this Form 10-K.

The business, financial condition

and operating results of the Company can be affected by a number of factors, whether currently known or unknown, including but not limited

to those described below, any one or more of which could, directly or indirectly, cause the Company’s actual financial condition

and operating results to vary materially from past, or from anticipated future, financial condition and operating results.

factors, in whole or in part, could materially and adversely affect the Company’s business, financial condition, operating results

and stock price.

In particular, our risks include, but are not limited to, the following:

1 unchanged sentence

We are an early stage company with a limited operating history.

Our limited operating history may not provide an adequate basis to judge our future prospects and results of operations.

We face intense competition and could lose market share to our competitors, which could adversely affect our business, financial condition and results of operations.

We could be subject to claims from riders, drivers or third parties that are harmed whether or not our service or platform is in use, which could adversely affect our business, brand, financial condition and results of operations.

We rely on other third-party service providers and if such third parties do not perform adequately or terminate their relationships with us, our costs may increase and our business, financial condition and results of operations could be adversely affected.

If we are not able to successfully develop new offerings and enhance our existing offerings, our business, financial condition and results of operations could be adversely affected.

Any failure to offer high-quality user support may harm our relationships with users and could adversely affect our reputation, brand, business, financial condition and results of operations.

Our business could be adversely impacted by changes in the Internet and mobile device accessibility of users and unfavorable changes in or our failure to comply with existing or future laws governing the Internet and mobile devices.

The impact of any kind of epidemic, such as the coronavirus, on our operations, and the operations of the car fleet companies, may harm our business.

We rely on mobile operating systems and application marketplaces to make our apps available to the drivers and riders on our platform, and if we do not effectively operate with or receive favorable placements within such application marketplaces and maintain high rider reviews, our usage or brand recognition could decline and our business, financial results and results of operations could be adversely affected.

We have significant customer concentration, with a limited number of customers accounting for a substantial portion of our revenues.

Failure to attract, grow and retain a diverse and balanced customer base could harm our business and operating results.

We depend on the interoperability of our platform across third-party applications and services that we do not control.

Failure to protect or enforce our intellectual property rights could harm our business, financial condition and results of operations.

Our platform contains third-party open source software components, and failure to comply with the terms of the underlying open source software licenses could restrict our ability to provide our offerings.

Failure to maintain our reputation and brand image could negatively impact our business.

Our success is dependent on retaining key personnel who would be difficult to replace.

The legal requirements associated with being a public company, including those contained in and issued under the Sarbanes-Oxley Act, may make it difficult for us to retain or attract qualified officers and directors, which could adversely affect the management of our business and our ability to obtain listing of our common stock

If we fail to establish and maintain an effective system of internal controls, we may not be able to report our financial results accurately or prevent fraud.

Any inability to report and file our financial results accurately and timely could harm our business and adversely impact the trading price of our common stock.

Operating as a public company requires us to incur substantial costs and requires substantial management attention.

In addition, key members of our management team have limited experience managing a public company.

limited operating history may not provide an adequate basis to judge our future prospects and results of operations.

We face intense competition and could lose market share to our competitors,

which could adversely affect our business, financial condition and results of operations.

We could be subject to claims from riders, drivers or third parties

that are harmed whether or not our service or platform is in use, which could adversely affect our business, brand, financial condition

and results of operations.

We rely on other third-party service providers and if such third parties

do not perform adequately or terminate their relationships with us, our costs may increase and our business, financial condition

and results of operations could be adversely affected.

If we are not able to successfully develop new offerings and enhance

our existing offerings, our business, financial condition and results of operations could be adversely affected.

Any failure to offer high-quality user support may harm our relationships

with users and could adversely affect our reputation, brand, business, financial condition and results of operations.

Our business could be adversely impacted by changes in the internet

and mobile device accessibility of users and unfavorable changes in or our failure to comply with existing or future laws governing

the internet and mobile devices.

We rely on mobile operating systems and application marketplaces to

make our apps available to the drivers and riders on our platform, and if we do not effectively operate with or receive favorable

placements within such application marketplaces and maintain high rider reviews, our usage or brand recognition could decline and

our business, financial results and results of operations could be adversely affected.

We have significant customer concentration, with a limited number of

customers accounting for a substantial portion of our revenues.

Failure to attract, grow and retain a diverse and balanced customer

base could harm our business and operating results.

We depend on the interoperability of our platform across third-party

applications and services that we do not control.

Failure to protect or enforce our intellectual property rights could

harm our business, financial condition and results of operations.

Our platform contains third-party open source software components,

and failure to comply with the terms of the underlying open source software licenses could restrict our ability to provide our offerings.

Failure to maintain our reputation and brand image could negatively

impact our business.

Our success is dependent on retaining key personnel who would be difficult

The legal requirements associated with being a public company, including

those contained in and issued under the Sarbanes-Oxley Act, may make it difficult for us to retain or attract qualified officers

and directors, which could adversely affect the management of our business and our ability to obtain listing of our common stock

If we fail to establish and maintain an effective system of internal

controls, we may not be able to report our financial results accurately or prevent fraud.

Any inability to report and file our financial

results accurately and timely could harm our business and adversely impact the trading price of our common stock.

Operating as a public company requires us to incur substantial costs

and requires substantial management attention.

In addition, key members of our management team have limited experience managing a

public company.

Risks Related to Doing Business in China

Changes in the political and economic policies of the PRC government may materially and adversely affect our business, financial condition and results of operations and may result in our inability to sustain our growth and expansion strategies.

There are uncertainties regarding the interpretation and enforcement of PRC laws, rules and regulations.

The PRC government exerts substantial influence over the manner in which we conduct our business activities.

The PRC government may also intervene or influence our operations at any time, which could result in a material change in our operations and our common stock could decline in value or become worthless.

The CSRC has enacted the draft rules for China-based companies seeking to conduct initial public offerings in foreign markets.

While such rules have not yet gone into effect and we have determined we are not subject to the measures, the CSRC may exert more oversight and control over offerings that are conducted overseas and foreign investment in China-based issuers, which could significantly limit or completely hinder our ability to offer or continue to offer our common stock to investors and could cause the value of our common stock to significantly decline or become worthless.

Failure to make adequate contributions to various employee benefit plans and withhold individual income tax on employees’ salaries as required by PRC regulations may subject us to penalties.

We must remit the offering proceeds to China before they may be used to benefit our business in China, and we cannot assure that we can finish all necessary governmental registration processes in a timely manner.

If relations between the United States and China worsen, investors may be unwilling to hold or buy our stock and our stock price may decrease.

The fluctuation of the Renminbi may have a material adverse effect on your investment.

Restrictions on currency exchange may limit our ability to receive and use our revenue effectively.

The PRC’s legal and judicial system may not adequately protect our business and operations and the rights of foreign investors.

Because our principal assets are located outside of the United States, it may be difficult for you to enforce your rights based on U.S.

Changes in the political and economic policies of the PRC government

may materially and adversely affect our business, financial condition and results of operations and may result in our inability to

sustain our growth and expansion strategies.

There are uncertainties regarding the interpretation and enforcement

of PRC laws, rules and regulations.

The PRC government exerts substantial influence over the manner in

which we conduct our business activities.

The PRC government may also intervene or influence our operations at any time, which could

result in a material change in our operations and our common stock could decline in value or become worthless.

Failure to make adequate contributions to various employee benefit

plans and withhold individual income tax on employees’ salaries as required by PRC regulations may subject us to penalties.

If relations between the United States and China worsen, investors

may be unwilling to hold or buy our stock and our stock price may decrease.

The fluctuation of the Renminbi may have a material adverse effect

on your investment.

Restrictions on currency exchange may limit our ability to receive

and use our revenue effectively.

The PRC’s legal and judicial system may not adequately protect

our business and operations and the rights of foreign investors.

Because our principal assets are located outside of the United States,

it may be difficult for you to enforce your rights based on U.S.

federal securities laws against us or to enforce a U.S.

court judgment against us or our operating subsidiaries in the PRC and in Hong Kong

Our operations could be adversely affected, directly or indirectly, by future PRC laws and regulations relating to our business or industry, if we inadvertently conclude that such approvals or permissions, including business licenses, are not required when they are, or applicable laws, regulations, or interpretations change and we are required to obtain approvals or permissions in the future.

You may face difficulties in protecting your interests and exercising your rights as our stockholder since we conduct the bulk of our operations in China.

We and our shareholders face uncertainties with respect to indirect transfers of equity interests in PRC resident enterprises or other assets attributed to a Chinese establishment of a non-Chinese company, or immovable properties located in China owned by non-Chinese companies.

The future development of national

security laws and regulations in Hong Kong could materially impact our business by possibly triggering sanctions and other measures

which can cause economic harm to our business.

Potential political and economic instability in Hong Kong may adversely impact our results of operations.

We may also face the risk that changes in the policies of the PRC government could have a significant impact upon the business we conduct in Hong Kong and the profitability of such business.

Our Hong Kong and Shenzhen subsidiaries may be subject to restrictions on paying dividends or making other payments to us, which may restrict its ability to satisfy liquidity requirements, conduct business and pay dividends to holders of our common stock.

Dividends payable to our foreign investors and gains on the sale of our shares of common stock by our foreign investors may become subject to tax by the PRC.

Holding Foreign Companies Accountable Act, or the HFCAA, and the related regulations are evolving quickly.

Further implementations and interpretations of our amendments to the HFCAA or the related regulations, or a PCAOB’s determination of its lack of sufficient access to inspect our auditor, might pose regulatory risks to and impose restrictions on us because of our operations in mainland China that PCAOB may not be able to inspect or investigate completely such audit documentation and, as such, you may be deprived of the benefits of such inspection and our ordinary share could be delisted from the stock exchange pursuant to the HFCAA.

court judgment

against us or our operating subsidiaries in the PRC and in Hong Kong.

Our operations could be adversely affected, directly or indirectly,

by future PRC laws and regulations relating to our business or industry, if we inadvertently conclude that such approvals or permissions,

including business licenses, are not required when they are, or applicable laws, regulations, or interpretations change and we are

required to obtain approvals or permissions in the future.

You may face difficulties in protecting your interests and exercising

your rights as our stockholder since we conduct the bulk of our operations in China.

We and our shareholders face uncertainties with respect to indirect

transfers of equity interests in PRC resident enterprises or other assets attributed to a Chinese establishment of a non-Chinese

company, or immovable properties located in China owned by non-Chinese companies.

The Hong Kong legal system embodies uncertainties which could limit

the legal protections available to our Hong Kong subsidiary.

The enactment of the Law of the PRC on Safeguarding National Security

in the Hong Kong Special Administrative Region (the “Hong Kong National Security Law”) and the Safeguarding National

Security Ordinance could impact our Hong Kong subsidiary, which represents substantially all of our business.

We may also face the

risk that changes in the policies of the PRC government could have a significant impact upon the business we conduct in Hong Kong

and the profitability of such business.

Our Hong Kong and Shenzhen subsidiaries may be subject to restrictions

on paying dividends or making other payments to us, which may restrict its ability to satisfy liquidity requirements, conduct business

and pay dividends to holders of our common stock.

Dividends payable to our foreign investors and gains on the sale of our shares

of common stock by our foreign investors may become subject to tax by the PRC.

Holding Foreign Companies Accountable Act, or the HFCAA, and the related

regulations are evolving quickly.

Further implementations and interpretations of our amendments to the HFCAA or the related regulations,

or a PCAOB’s determination of its lack of sufficient access to inspect our auditor, might pose regulatory risks to and impose

restrictions on us because of our operations in mainland China that PCAOB may not be able to inspect or investigate completely such

audit documentation and, as such, you may be deprived of the benefits of such inspection and our ordinary share could be delisted

from the stock exchange pursuant to the HFCAA.

Risks Related to Our Common Stock

Our majority stockholders will control our company for the foreseeable future, including the outcome of matters requiring shareholder approval.

No public market for our common stock currently exists, and an active trading market may not develop or be sustained following this offering.

While we believe our revenues and cash on hand are adequate to meet our immediate needs, we may require additional funding in order to progress our business in the future.

If we are unable to raise additional capital, we could be forced to delay, reduce or eliminate portions of our business.

There is substantial doubt about our ability to continue as a going concern.

Raising additional capital may cause dilution to our stockholders, restrict our operations or require us to relinquish rights to our technologies or product candidates.

Our majority stockholders will control our company for the foreseeable

future, including the outcome of matters requiring shareholder approval.

No public market for our common stock currently exists, and an active

trading market may not develop or be sustained following this offering.

While we believe our revenues and cash on hand are adequate to meet

our immediate needs, we may require additional funding in order to progress our business in the future.

If we are unable to raise

additional capital, we could be forced to delay, reduce or eliminate portions of our business.

There is substantial doubt about our ability to continue as a going

Raising additional capital may cause dilution to our stockholders,

restrict our operations or require us to relinquish rights to our technologies or product candidates.

Even if an active trading market develops, the market price for our

common stock may be volatile.

Our common stock may be

thinly traded and you may be unable to sell at or near ask prices or at all if you need to sell your shares to raise money or

otherwise desire to liquidate your shares.

Our common stock is considered a “penny stock,” and thereby be subject to additional sale and trading regulations that may make it more difficult to sell.

FINRA sales practice requirements may also limit your ability to buy and sell shares of our common stock, which could depress the price of shares of our common stock.

Potential future sales under Rule 144 may depress the market price for the common stock.

Our common stock may be thinly traded and you may be unable to sell

at or near ask prices or at all if you need to sell your shares to raise money or otherwise desire to liquidate your shares.

Our common stock is considered a “penny stock,” and thereby

be subject to additional sale and trading regulations that may make it more difficult to sell.

FINRA sales practice requirements may also limit your ability to buy

and sell shares of our common stock, which could depress the price of shares of our common stock.

Potential future sales under Rule 144 may depress the market price

for the common stock.

Volatility in our common stock price may subject us to securities litigation.

We are not likely to pay cash dividends in the foreseeable future.

investors may experience difficulties in attempting to effect a service of process and enforce judgments based upon U.S.

investors may experience difficulties in attempting to effect

a service of process and enforce judgments based upon U.S.

Federal Securities Laws against the company and its non U.S.

resident officer and director.

of the following factors, as well as other factors affecting the Company’s financial condition and operating results, past financial

performance should not be considered to be a reliable indicator of future performance, and investors should not use historical

trends to anticipate results or trends in future periods.

Our majority stockholders will

control our company for the foreseeable future, including the outcome of matters requiring shareholder approval.

No public market for our common

stock currently exists, and an active trading market may not develop or be sustained following this offering.

While we believe our revenues

and cash on hand are adequate to meet our immediate needs, we may require additional funding in order to progress our business in

If we are unable to raise additional capital, we could be forced to delay, reduce or eliminate portions of our business.

There is substantial doubt

about our ability to continue as a going concern.

Raising additional capital

may cause dilution to our stockholders, restrict our operations or require us to relinquish rights to our technologies or product

Even if an active trading market develops, the market price for our common stock may be volatile.

Our common stock may be thinly

traded and you may be unable to sell at or near ask prices or at all if you need to sell your shares to raise money or otherwise

desire to liquidate your shares.

Our common stock is considered

a “penny stock,” and thereby be subject to additional sale and trading regulations that may make it more difficult to

FINRA sales practice requirements

may also limit your ability to buy and sell shares of our common stock, which could depress the price of shares of our common stock.

Potential future sales under

Rule 144 may depress the market price for the common stock.

Volatility in our common stock

price may subject us to securities litigation.

We are not likely to pay cash

dividends in the foreseeable future.

investors may experience

difficulties in attempting to effect a service of process and enforce judgments based upon U.S.

Federal Securities Laws against the

company and its non U.S.

resident officer and director.

officer and director.

Because of the following

factors, as well as other factors affecting the Company’s financial condition and operating results, past financial performance

should not be considered to be a reliable indicator of future performance, and investors should not use historical trends to anticipate

results or trends in future periods.

Our majority stockholders will control our company for the foreseeable

future, including the outcome of matters requiring shareholder approval.

No public market for our common stock currently exists, and an active

trading market may not develop or be sustained following this offering.

While we believe our revenues and cash on hand are adequate to meet

our immediate needs, we may require additional funding in order to progress our business in the future.

If we are unable to raise

additional capital, we could be forced to delay, reduce or eliminate portions of our business.

There is substantial doubt about our ability to continue as a going

Raising additional capital may cause dilution to our stockholders,

restrict our operations or require us to relinquish rights to our technologies or product candidates.

Even if an active trading market develops, the market price for our

common stock may be volatile.

Our common stock may be thinly traded and you may be unable to sell

at or near ask prices or at all if you need to sell your shares to raise money or otherwise desire to liquidate your shares.

Our common stock is considered a “penny stock,” and thereby

be subject to additional sale and trading regulations that may make it more difficult to sell.

FINRA sales practice requirements may also limit your ability to buy

and sell shares of our common stock, which could depress the price of shares of our common stock.

Potential future sales under Rule 144 may depress the market price

for the common stock.

We are not likely to pay cash dividends in the foreseeable future.

investors may experience difficulties in attempting to effect

a service of process and enforce judgments based upon U.S.

Federal Securities Laws against the company and its non U.S.

officer and director.

Risks Related to Our Business

We are an early stage company with a limited operating history.

We are an early stage company with a limited

operating history.

Our limited operating history may not provide an adequate basis to judge our future prospects and results of operations.

We have a limited operating history.

operating subsidiary, Pony Limousine Services Limited was established in Hong Kong on April 28, 2018 to engage in providing car services

to travelers between Guangdong Province and Hong Kong.

We have a limited operating

Our first operating subsidiary, Pony Limousine Services Limited was established in Hong Kong on April 28, 2018 to engage in

providing car services to travelers between Guangdong Province and Hong Kong.

Pony Group Inc.

was established in the State of Delaware on January 7, 2019.

have limited experience and operating history in the travel industry.

Our limited history may not provide a meaningful basis for investors

to evaluate our business, financial performance and prospects.

We face intense competition and could lose market share to our

competitors, which could adversely affect our business, financial condition and results of operations.

market for car services is intensely competitive and characterized by rapid changes in technology, shifting rider needs and frequent introductions

of new services and offerings.

We expect competition to continue, both from current competitors and new entrants in the market that may

be well-established and enjoy greater resources or other strategic advantages.

If we are unable to anticipate or react to these competitive

challenges, our competitive position could weaken, or fail to improve, and we could experience a decline in revenue or growth stagnation

that could adversely affect our business, financial condition and results

of operations.

Our main competitors in mainland China and Hong

Kong include Shenzhen Anxun Automobile Rental Co., Ltd., The Motor Transport Company of Guangdong and Hong Kong Limited and China Comfort

(Shenzhen) Travel Services Co., Ltd.

of our competitors have greater financial, technical, marketing, research and development, manufacturing and other resources, greater

name recognition, longer operating histories or a larger user base than we do.

They may be able to devote greater resources to the development,

promotion and sale of offerings and offer lower prices than we do, which could adversely affect our results of operations.

Further, they

may have greater resources to deploy towards the research, development and commercialization of new technologies, or they may have other

financial, technical or resource advantages.

These factors may allow our competitors to derive greater revenue and profits from their

existing user bases, attract and retain new qualified drivers and new riders at lower costs or respond more quickly to new and emerging

technologies and trends.

Our current and potential competitors may also establish cooperative or strategic relationships amongst themselves

or with third parties that may furt her enhance their resources and offerings.

We believe that our ability to compete effectively

depends upon many factors both within and beyond our control, including:

the popularity, utility, ease of use, performance and reliability of our offerings compared to those of our competitors;

was established in the State of Delaware

on January 7, 2019.

We have limited experience and operating history in the travel industry and have not grown our revenue substantially

since inception.

Our limited history may not provide a meaningful basis for investors to evaluate our business, financial performance

and prospects.

We face intense competition and could lose

market share to our competitors, which could adversely affect our business, financial condition and results of operations.

The market for car services

is intensely competitive and characterized by rapid changes in technology, shifting rider needs and frequent introductions of new services

and offerings.

We expect competition to continue, both from current competitors and new entrants in the market that may be well-established

and enjoy greater resources or other strategic advantages.

If we are unable to anticipate or react to these competitive challenges, our

competitive position could weaken, or fail to improve, and we could experience a decline in revenue or growth stagnation that could adversely

affect our business, financial condition and results of operations.

Our main competitors in mainland

China and Hong Kong include Shenzhen Anxun Automobile Rental Co., Ltd., The Motor Transport Company of Guangdong and Hong Kong Limited

and China Comfort (Shenzhen) Travel Services Co., Ltd.

Certain of our competitors

have greater financial, technical, marketing, research and development, manufacturing and other resources, greater name recognition,

longer operating histories or a larger user base than we do.

They may be able to devote greater resources to the development, promotion

and sale of offerings and offer lower prices than we do, which could adversely affect our results of operations.

Further, they may have

greater resources to deploy towards the research, development and commercialization of new technologies, or they may have other financial,

technical or resource advantages.

These factors may allow our competitors to derive greater revenue and profits from their existing user

bases, attract and retain new qualified drivers and new riders at lower costs or respond more quickly to new and emerging technologies

Our current and potential competitors may also establish cooperative or strategic relationships amongst themselves or with

third parties that may further enhance their resources and offerings.

We believe that our ability

to compete effectively depends upon many factors both within and beyond our control, including:

the popularity, utility, ease of use, performance and reliability of

our offerings compared to those of our competitors;

our reputation and brand strength relative to our competitors;

3 unchanged sentences

our ability to establish and maintain relationships with partners;

changes mandated by, or that we elect to make, to address, legislation, regulatory authorities or litigation, including settlements, judgments, injunctions and consent decrees;

changes mandated by, or that we elect to make, to address, legislation,

regulatory authorities or litigation, including settlements, judgments, injunctions and consent decrees;

our ability to attract, retain and motivate talented employees;

1 unchanged sentence

acquisitions or consolidation within our industry.

If we are unable to compete successfully, our business,

financial condition and results of operations could be adversely affected.

our ability to establish and

maintain relationships with partners;

changes mandated by, or that we elect to make, to address,

legislation, regulatory authorities or litigation, including settlements, judgments, injunctions and consent decrees;

our ability to attract, retain and motivate talented

If we are unable to compete

successfully, our business, financial condition and results of operations could be adversely affected.

our ability to establish and maintain relationships with partners;

changes mandated by, or that we elect to make, to address, legislation,

regulatory authorities or litigation, including settlements, judgments, injunctions and consent decrees;

our ability to attract, retain and motivate talented employees;

our ability to raise additional capital;

3 unchanged sentences

affect our business, brand, financial condition and results of operations.

We could be subject to claims, lawsuits, investigations

and other legal proceedings relating to injuries to, or deaths of, riders, drivers or third parties that are attributed to us through

our offerings.

We may also be subject to claims alleging that we are directly or vicariously liable for the acts of the drivers from the

car fleet companies that we collaborated with.

We may be subject to personal injury claims whether or not such injury actually occurred

as a result of activity on our platform.

Regardless of the outcome of any legal proceeding, any injuries to, or deaths of, any riders,

drivers or third parties could result in negative publicity and harm to our brand, reputation, business, financial condition and results

of operations.

Any of the foregoing risks could adversely affect our business, financial condition and results of operations.

We rely on other third-party service

providers and if such third parties do not perform adequately or terminate their relationships with us, our costs may increase and our

business, financial condition and results of operations could be adversely affected.

Our success depends in part on our relationships

with other third-party service providers, such as Changying Business Limited and Huatai

travel Co., Ltd.

Further, from time to time, we enter into collaboration arrangement in connection with car fleets and drivers.

of our partners terminates its relationship with us or refuses to renew its agreement with us on commercially reasonable terms, we would

need to find an alternate provider, and may not be able to secure similar terms or replace such providers in an acceptable timeframe.

We also rely on other software and services supplied by third parties, such as communications and internal software, and our business

may be adversely affected to the extent such software and services do not meet our expectations, contain errors or vulnerabilities, are

compromised or experience outages.

Any of these risks could increase our costs and adversely affect our business, financial condition

and results of operations.

Further, any negative publicity related to any of our third-party partners, including any publicity related

to quality standards or safety concerns, could adversely affect our reputation and brand, and could potentially lead to increased regulatory

or litigation exposure.

If we are not able to successfully develop

new offerings and enhance our existing offerings, our business, financial condition and results of operations could be adversely affected.

ability to attract new riders, retain existing riders and increase utilization of our offerings will depend in part on our ability to

successfully create and introduce new offerings and to improve upon and enhance our existing offerings.

As a result, we may introduce

significant changes to our existing offerings or develop and introduce new and unproven offerings.

Furthermore, new rider demands regarding

service, the availability of superior competitive offerings or a deterioration in the quality of our offerings or our ability to bring

new or enhanced offerings to market quickly and efficiently could negatively affect the attractiveness of our service and the economics

of our business and require us to make substantial changes to and additional investments in our offerings or our business model.

we frequently experiment with and test different offerings and marketing strategies.

If these experiments and tests are unsuccessful,

or if the offerings and strategies we introduce based on the resu lts of such experiments and tests do not perform as expected,

our ability to attract new qualified drivers and new riders, retain existing qualified drivers and existing riders and maintain or increase

utilization of our offerings may be adversely affected.

and launching new offerings or enhancements to the existing offerings involves significant risks and uncertainties, including risks related

to the reception of such offerings by existing and potential future riders, increases in operational complexity, unanticipated delays

or challenges in implementing such offerings or enhancements, increased strain on our operational and internal resources (including an

impairment of our ability to accurately forecast rider demand) and negative publicity in the event such new or enhanced offerings are

perceived to be unsuccessful.

We have scaled our business rapidly, and significant new initiatives have in the past resulted in, and in

the future may result in, operational challenges affecting our business.

In addition, developing and launching new offerings and enhancements

to our existing offerings may involve significant upfront capital investments and such investments may not generate return on investment.

Any of the foregoing risks and challenges could negati vely impact our ability to attract and retain qualified drivers and riders,

our ability to increase utilization of our offerings and our visibility into expected results of operations, and could adversely affect

our business, financial condition and results of operations.

Additionally, since

we are focused on building our community and ecosystems for the long-term, our near-term results of operations may be impacted by our

investments in the future.

Any failure to offer high-quality user

support may harm our relationships with users and could adversely affect our reputation, brand, business, financial condition and results

of operations.

ability to attract and retain riders is dependent in part on the ease and reliability of our offerings, including our ability to provide

high-quality support.

Our customers depend on our support organization to resolve any issues relating to our offerings, such as being

overcharged for a ride, leaving something in a driver’s vehicle or reporting a safety incident.

Our ability to provide effective

and timely support is largely dependent on our ability to attract and retain service providers who are qualified to support users and

s ufficiently knowledgeable regarding our offerings.

As we continue to

grow our business and improve our offerings, we will face challenges related to providing quality support services at scale.

our international rider base, our support organization will face additional challenges, including those associated with delivering support

in languages other than Chinese.

Any failure to provide efficient user support, or a market perception that we do not maintain high-quality

s upport, could adversely affect our reputation, brand, business, financial condition

and results of operations.

Systems failures and resulting interruptions

in the availability of our website, applications, platform or offerings could adversely affect our business, financial condition and results

of operations.

Our systems, or those of third parties upon which

we rely, may experience service interruptions or degradation because of hardware and software defects or malfunctions, distributed denial-of-service and

other cyberattacks, human error, earthquakes, hurricanes, floods, fires, natural disasters, power losses, disruptions in telecommunications

services, fraud, military or political conflicts, terrorist attacks, computer viruses, ransomware, malware or other events.

also may be subject to break-ins, sabotage, theft and intentional acts of vandalism, including by our own employees.

our systems are not fully redundant and our disaster recovery planning may not be sufficient for all eventualities.

Our business interruption

insurance may not be sufficient to cover all of our losses that may result from interruptions in our service as a result of systems failures

and similar events.

We will likely continue to experience system failures

and other events or conditions from time to time that interrupt the availability or reduce or affect the speed or functionality of our

These events have resulted in, and similar future events could result in, losses of revenue.

A prolonged interruption in the

availability or reduction in the availability, speed or other functionality of our offerings could adversely affect our business and reputation

and could result in the loss of users.

Moreover, to the extent that any system failure or similar event results in harm or losses to the

users using our platform, we may make voluntary payments to compensate for such harm or the affected users could seek monetary recourse

or contractual remedies from us for their losses and such claims, even if unsuccessful, would likely be time-consuming and costly for

us to address.

Our business could be adversely impacted

by changes in the Internet and mobile device accessibility of users and unfavorable changes in or our failure to comply with existing

or future laws governing the Internet and mobile devices.

Our business depends on users’ access to

our platform via a mobile device and the Internet.

We may operate in jurisdictions that provide limited Internet connectivity, particularly

as we expand internationally.

Internet access and access to a mobile device are frequently provided by companies with significant market

power that could take actions that degrade, disrupt or increase the cost of users’ ability to access our platform.

the Internet infrastructure that we and users of our platform rely on in any particular geographic area may be unable to support the demands

placed upon it.

Any such failure in Internet or mobile device accessibility, even for a short period of time, could adversely affect our

We could be subject to claims,

lawsuits, investigations and other legal proceedings relating to injuries to, or deaths of, riders, drivers or third parties that are

attributed to us through our offerings.

We may also be subject to claims alleging that we are directly or vicariously liable for the

acts of the drivers from the car fleet companies that we collaborated with.

We may be subject to personal injury claims whether or not

such injury actually occurred as a result of activity on our platform.

Regardless of the outcome of any legal proceeding, any injuries

to, or deaths of, any riders, drivers or third parties could result in negative publicity and harm to our brand, reputation, business,

financial condition and results of operations.

Any of the foregoing risks could adversely affect our business, financial condition and

results of operations.

we are subject to a number of laws and regulations specifically governing the Internet and mobile devices that are constantly evolving.

Existing and future laws and regulations, or changes thereto, may impede the growth and availability of the Internet and online offerings,

require us to change our business practices or raise compliance costs or other costs of doing business.

These laws and regulations, which

continue to evolve, cover taxation, privacy and data protection, pricing, copyrights, distribution, mobile and other communicati ons,

advertising practices, consumer protections, the provision of online payment services, unencumbered Internet access to our offerings and

the characteristics and quality of online offerings, among other things.

Any failure, or perceived failure, by us to comply with any of

these laws or regulations could result in damage to our reputation and brand a loss in business and proceedings or actions against us

by governmental entities or others, which could adversely impact our results of operations.

We rely on mobile operating systems

and application marketplaces to make our apps available to the drivers and riders on our platform, and if we do not effectively operate

with or receive favorable placements within such application marketplaces and maintain high rider reviews, our usage or brand recognition

could decline and our business, financial results and results of operations could be adversely affected.

depend in part on mobile operating systems, such as Android and iOS, and their respective application marketplaces to make

our apps available to the drivers and riders on our platform.

Any changes in such systems and application marketplaces that degrade the

functionality of our apps or give preferential treatment to our competitors’ apps could adversely affect our platform’s usage

on mobile devices.

If such mobile operating systems or application marketplaces limit or prohibit us from making our apps available to

drivers and riders, make changes that degrade the functionality of our apps, increase the cost of using our apps, impose terms of use

unsatisfactory to us or modify their search or ratings algorithms in ways that are detrimental to us, or if our competitors’ placement

in such mobile operating systems’ application marketplace is more prominent than the placement of our apps, overall growth in our

rider or driver base could slow.

Our apps have experienced fluctuations in number of downloads in the past, and we anticipate similar

fluctuations in the future.

Any of the foregoing risks could adversely affect our business, financial condition

We rely on other

third-party service providers and if such third parties do not perform adequately or terminate their relationships with us, our costs

may increase and our business, financial condition and results of operations could be adversely affected.

Our success depends in part

on our relationships with other third-party service providers, such as Yahong Business Limited .

Further, from time to time, we enter

into collaboration arrangement in connection with car fleets and drivers.

If any of our partners terminates its relationship with us

or refuses to renew its agreement with us on commercially reasonable terms, we would need to find an alternate provider, and may not

be able to secure similar terms or replace such providers in an acceptable timeframe.

We also rely on other software and services supplied

by third parties, such as communications and internal software, and our business may be adversely affected to the extent such software

and services do not meet our expectations, contain errors or vulnerabilities, are compromised or experience outages.

Any of these risks

could increase our costs and adversely affect our business, financial condition and results of operations.

Further, any negative publicity

related to any of our third-party partners, including any publicity related to quality standards or safety concerns, could adversely

affect our reputation and brand, and could potentially lead to increased regulatory or litigation exposure.

If we are not

able to successfully develop new offerings and enhance our existing offerings, our business, financial condition and results of operations

could be adversely affected.

Our ability to attract new

riders, retain existing riders and increase utilization of our offerings will depend in part on our ability to successfully create and

introduce new offerings and to improve upon and enhance our existing offerings.

As a result, we may introduce significant changes to

our existing offerings or develop and introduce new and unproven offerings.

Furthermore, new rider demands regarding service, the availability

of superior competitive offerings or a deterioration in the quality of our offerings or our ability to bring new or enhanced offerings

to market quickly and efficiently could negatively affect the attractiveness of our service and the economics of our business and require

us to make substantial changes to and additional investments in our offerings or our business model.

In addition, we frequently experiment

with and test different offerings and marketing strategies.

If these experiments and tests are unsuccessful, or if the offerings and

strategies we introduce based on the results of such experiments and tests do not perform as expected, our ability to attract new qualified

drivers and new riders, retain existing qualified drivers and existing riders and maintain or increase utilization of our offerings may

be adversely affected.

Developing and launching

new offerings or enhancements to the existing offerings involves significant risks and uncertainties, including risks related to the

reception of such offerings by existing and potential future riders, increases in operational complexity, unanticipated delays or challenges

in implementing such offerings or enhancements, increased strain on our operational and internal resources (including an impairment of

our ability to accurately forecast rider demand) and negative publicity in the event such new or enhanced offerings are perceived to

be unsuccessful.

We have scaled our business rapidly, and significant new initiatives have in the past resulted in, and in the future

may result in, operational challenges affecting our business.

In addition, developing and launching new offerings and enhancements to

our existing offerings may involve significant upfront capital investments and such investments may not generate return on investment.

Any of the foregoing risks and challenges could negatively impact our ability to attract and retain qualified drivers and riders, our

ability to increase utilization of our offerings and our visibility into expected results of operations, and could adversely affect our

business, financial condition and results of operations.

Additionally, since we are focused on building our community and ecosystems

for the long-term, our near-term results of operations may be impacted by our investments in the future.

Any failure to

offer high-quality user support may harm our relationships with users and could adversely affect our reputation, brand, business, financial

condition and results of operations.

Our ability to attract and

retain riders is dependent in part on the ease and reliability of our offerings, including our ability to provide high-quality support.

Our customers depend on our support organization to resolve any issues relating to our offerings, such as being overcharged for a ride,

leaving something in a driver’s vehicle or reporting a safety incident.

Our ability to provide effective and timely support is

largely dependent on our ability to attract and retain service providers who are qualified to support users and sufficiently knowledgeable

regarding our offerings.

As we continue to grow our business and improve our offerings, we will face challenges related to providing

quality support services at scale.

If we grow our international rider base, our support organization will face additional challenges,

including those associated with delivering support in languages other than Chinese.

Any failure to provide efficient user support, or

a market perception that we do not maintain high-quality support, could adversely affect our reputation, brand, business, financial condition

and results of operations.

new mobile devices and mobile platforms are released, there is no guarantee that certain mobile devices will continue to support our platform

or effectively roll out updates to our apps.

Additionally, in order to deliver high-quality apps, we need to ensure that our offerings

are designed to work effectively with a range of mobile technologies, systems, networks and standards.

We may not be successful in developing

or maintaining relationships with key participants in the mobile industry that enhance drivers’ and riders’ experience.

drivers or riders on our platform encounter any difficulty accessing or using our apps on their mobile devices or if we are unable to

adapt to changes in popular mobile operating sys tems, our business, financial condition

and results of operations could be adversely affected.

We depend on the interoperability of

our platform across third-party applications and services that we do not control.

have integrations with AutoNavi Maps (also known as Gaode Maps) and a variety of other productivity, collaboration, travel, data management

and security vendors.

As our offerings expand and evolve, including as we develop autonomous technology, we may have an increasing number

of integrations with other third-party applications, products and services.

Third-party applications, products and services are constantly

evolving, and we may not be able to maintain or modify our platform to ensure its compatibility with third-party offerings following development

Systems failures

and resulting interruptions in the availability of our website, applications, platform or offerings could adversely affect our business,

financial condition and results of operations.

Our systems, or those of

third parties upon which we rely, may experience service interruptions or degradation because of hardware and software defects or malfunctions,

distributed denial-of-service and other cyberattacks, human error, earthquakes, hurricanes, floods, fires, natural disasters,

power losses, disruptions in telecommunications services, fraud, military or political conflicts, terrorist attacks, computer viruses,

ransomware, malware or other events.

Our systems also may be subject to break-ins, sabotage, theft and intentional acts of

vandalism, including by our own employees.

Some of our systems are not fully redundant and our disaster recovery planning may not be

sufficient for all eventualities.

Our business interruption insurance may not be sufficient to cover all of our losses that may result

from interruptions in our service as a result of systems failures and similar events.

We will likely continue to

experience system failures and other events or conditions from time to time that interrupt the availability or reduce or affect the speed

or functionality of our offerings.

These events have resulted in, and similar future events could result in, losses of revenue.

interruption in the availability or reduction in the availability, speed or other functionality of our offerings could adversely affect

our business and reputation and could result in the loss of users.

Moreover, to the extent that any system failure or similar event results

in harm or losses to the users using our platform, we may make voluntary payments to compensate for such harm or the affected users could

seek monetary recourse or contractual remedies from us for their losses and such claims, even if unsuccessful, would likely be time-consuming

and costly for us to address.

Our business could

be adversely impacted by changes in the internet and mobile device accessibility of users and unfavorable changes in or our failure to

comply with existing or future laws governing the internet and mobile devices.

Our business depends on users’

access to our platform via a mobile device and the internet.

We may operate in jurisdictions that provide limited internet connectivity,

particularly as we expand internationally.

internet access and access to a mobile device are frequently provided by companies with significant

market power that could take actions that degrade, disrupt or increase the cost of users’ ability to access our platform.

the internet infrastructure that we and users of our platform rely on in any particular geographic area may be unable to support the

demands placed upon it.

Any such failure in internet or mobile device accessibility, even for a short period of time, could adversely

affect our results of operations.

Moreover, we are subject

to a number of laws and regulations specifically governing the internet and mobile devices that are constantly evolving.

future laws and regulations, or changes thereto, may impede the growth and availability of the internet and online offerings, require

us to change our business practices or raise compliance costs or other costs of doing business.

These laws and regulations, which continue

to evolve, cover taxation, privacy and data protection, pricing, copyrights, distribution, mobile and other communications, advertising

practices, consumer protections, the provision of online payment services, unencumbered internet access to our offerings and the characteristics

and quality of online offerings, among other things.

Any failure, or perceived failure, by us to comply with any of these laws or regulations

could result in damage to our reputation and brand a loss in business and proceedings or actions against us by governmental entities

or others, which could adversely impact our results of operations.

We rely on mobile

operating systems and application marketplaces to make our apps available to the drivers and riders on our platform, and if we do not

effectively operate with or receive favorable placements within such application marketplaces and maintain high rider reviews, our usage

or brand recognition could decline and our business, financial results and results of operations could be adversely affected.

We depend in part on mobile

operating systems, such as Android and iOS, and their respective application marketplaces to make our apps available to the drivers

and riders on our platform.

Any changes in such systems and application marketplaces that degrade the functionality of our apps or give

preferential treatment to our competitors’ apps could adversely affect our platform’s usage on mobile devices.

If such mobile

operating systems or application marketplaces limit or prohibit us from making our apps available to drivers and riders, make changes

that degrade the functionality of our apps, increase the cost of using our apps, impose terms of use unsatisfactory to us or modify their

search or ratings algorithms in ways that are detrimental to us, or if our competitors’ placement in such mobile operating systems’

application marketplace is more prominent than the placement of our apps, overall growth in our rider or driver base could slow.

apps have experienced fluctuations in number of downloads in the past, and we anticipate similar fluctuations in the future.

foregoing risks could adversely affect our business, financial condition and results of operations.

As new mobile devices and

mobile platforms are released, there is no guarantee that certain mobile devices will continue to support our platform or effectively

roll out updates to our apps.

Additionally, in order to deliver high-quality apps, we need to ensure that our offerings are designed

to work effectively with a range of mobile technologies, systems, networks and standards.

We may not be successful in developing or maintaining

relationships with key participants in the mobile industry that enhance drivers’ and riders’ experience.

If drivers or riders

on our platform encounter any difficulty accessing or using our apps on their mobile devices or if we are unable to adapt to changes

in popular mobile operating systems, our business, financial condition and results of operations could be adversely affected.

We depend on the

interoperability of our platform across third-party applications and services that we do not control.

We have integrations with

AutoNavi Maps (also known as Gaode Maps) and a variety of other productivity, collaboration, travel, data management and security vendors.

As our offerings expand and evolve, including as we develop autonomous technology, we may have an increasing number of integrations with

other third-party applications, products and services.

Third-party applications, products and services are constantly evolving, and we

may not be able to maintain or modify our platform to ensure its compatibility with third-party offerings following development changes.

As our mobile application and respective products evolve, we expect the types and levels of competition to increase.

of our competitors or technology partners modify their products, standards or terms of use in a manner that degrades the functionality

or performance of our platform or is otherwise unsatisfactory to us or gives preferential treatment to competitive products or services,

our products, platform, business, financial condit ion and results of operations could be adversely affected.

have significant customer concentration, with a limited number of customers accounting for a substantial portion of our revenues.

to attract, grow and retain a diverse and balanced customer base could harm our business and operating results.

We have a limited number of customers that account for a substantial

portion of our revenues, which carries risks.

Two of our customers, accounted for approximately 53% of our revenues for the year ended

December 31, 2024.

It is not possible for us to predict the level of demand that will be generated by any of these customers in the future.

In addition, revenues from these larger customers may fluctuate from time to time based on these customers’ business needs and customer

experience, the timing of which may be affected by market conditions or other factors outside of our control.

These customers could also

potentially pressure us to reduce the prices we charge, which could have an adverse effect on our margins and financial position and could

negatively affect our revenues and results of operations.

However, there is no assurance that if any of our large customers terminates

their relationship with us or materially reduces the services they acquire from us, such termination or reduction could negatively affect

our revenues and results of operations.

Should any of our

competitors or technology partners modify their products, standards or terms of use in a manner that degrades the functionality or performance

of our platform or is otherwise unsatisfactory to us or gives preferential treatment to competitive products or services, our products,

platform, business, financial condition and results of operations could be adversely affected.

We have significant customer concentration,

with a limited number of customers accounting for a substantial portion of our revenues.

Failure to attract, grow and retain a diverse

and balanced customer base could harm our business and operating results.

We have a limited number

of customers that account for a substantial portion of our revenues, which carries risks.

Two of our customers, accounted for approximately

58% of our revenues for the year ended December 31, 2025.

It is not possible for us to predict the level of demand that will be generated

by any of these customers in the future.

In addition, revenues from these larger customers may fluctuate from time to time based on these

customers’ business needs and customer experience, the timing of which may be affected by market conditions or other factors outside

of our control.

These customers could also potentially pressure us to reduce the prices we charge, which could have an adverse effect

on our margins and financial position and could negatively affect our revenues and results of operations.

However, there is no assurance

that if any of our large customers terminates their relationship with us or materially reduces the services they acquire from us, such

termination or reduction could negatively affect our revenues and results of operations.

Our ability to attract, grow

5 unchanged sentences

of operations.

Failure to protect or enforce our intellectual property rights

could harm our business, financial condition and results of operations.

success is dependent in part upon protecting our intellectual property rights and technology (such as code, information, data, processes

and other forms of information, knowhow and technology), or intellectual property.

We rely on a combination of patents, copyrights,

trademarks, service marks, trade secret laws and contractual restrictions to establish and protect our intellectual property.

the steps we take to protect our intellectual property may not be sufficient or effective.

Even if we do detect violations, we may need

to engage in litigation to enforce our rights.

Any enforcement efforts we undertake, including litigation, could be time-consuming and

expensive and could divert management attention.

While we take precautions designed to protect our intellectual property, it may still

be possible for competitors and other unauthorized third parties to copy our technology and use our proprietary information to create

or enhance competing solutions and services, which could adversely affect our position in our rapidly evolving and highly competitive

may be required to spend significant resources in order to monitor and protect our intellectual property rights, and some violations may

be difficult or impossible to detect.

Litigation to protect and enforce our intellectual property rights could be costly, time-consuming

and distracting to management and could result in the impairment or loss of portions of our intellectual property.

Our efforts to enforce

our intellectual property rights may be met with defenses, counterclaims and countersuits attacking the validity and enforceability of

our intellectual property rights.

Our inability to protect our proprietary technology against unauthorized copying or use, as well as

any costly litigation or diversion of our management’s attention and resources, could impair the functio nality of our platform,

delay introductions of enhancements to our platform, result in our substituting inferior or more costly technologies into our platform

or harm our reputation or brand.

In addition, we may be required to license additional technology from third parties to develop and market

new offerings or platform features, which may not be on commercially reasonable terms or at all and could adversely affect our ability

Our industry has also been subject to

attempts to steal intellectual property, particularly regarding autonomous vehicle development, including by foreign actors.

with others in our industry, have been the target of attempted thefts of our intellectual property and may be subject to such attempts

in the future.

Although we take measures to protect our property, if we are unable to prevent the theft of our intellectual property or

its exploitation, the value of our investments may be undermined and our business, financial condition and results of operations may be

negatively impacted.

Our platform contains third-party open

source software components, and failure to comply with the terms of the underlying open source software licenses could restrict our ability

to provide our offerings.

Our platform contains software modules

licensed to us by third-party authors under “open source” licenses.

Use and distribution of open source software may entail

greater risks than use of third-party commercial software, as open source licensors generally do not provide support, warranties, indemnification

or other contractual protections regarding infringement claims or the quality of the code.

In addition, the public availability of such

software may make it easier for others to compromise our platform.

Failure to protect or enforce our intellectual

property rights could harm our business, financial condition and results of operations.

Our success is

dependent in part upon protecting our intellectual property rights and technology (such as code, information, data, processes and other

forms of information, knowhow and technology), or intellectual property.

We rely on a combination of patents, copyrights, trademarks,

service marks, trade secret laws and contractual restrictions to establish and protect our intellectual property.

However, the steps

we take to protect our intellectual property may not be sufficient or effective.

Even if we do detect violations, we may need to engage

in litigation to enforce our rights.

Any enforcement efforts we undertake, including litigation, could be time-consuming and expensive

and could divert management attention.

While we take precautions designed to protect our intellectual property, it may still be possible

for competitors and other unauthorized third parties to copy our technology and use our proprietary information to create or enhance

competing solutions and services, which could adversely affect our position in our rapidly evolving and highly competitive industry.

required to spend significant resources in order to monitor and protect our intellectual property rights, and some violations may be

difficult or impossible to detect.

Litigation to protect and enforce our intellectual property rights could be costly,

time-consuming and distracting to management and could result in the impairment or loss of portions of our intellectual property.

Our efforts to enforce our intellectual property rights may be met with defenses, counterclaims and countersuits attacking the

validity and enforceability of our intellectual property rights.

Our inability to protect our proprietary technology against

unauthorized copying or use, as well as any costly litigation or diversion of our management’s attention and resources, could

impair the functionality of our platform, delay introductions of enhancements to our platform, result in our substituting inferior

or more costly technologies into our platform or harm our reputation or brand.

In addition, we may be required to license additional

technology from third parties to develop and market new offerings or platform features, which may not be on commercially reasonable

terms or at all and could adversely affect our ability to compete.

Our industry has

also been subject to attempts to steal intellectual property, particularly regarding autonomous vehicle development, including by foreign

We, along with others in our industry, have been the target of attempted thefts of our intellectual property and may be subject

to such attempts in the future.

Although we take measures to protect our property, if we are unable to prevent the theft of our intellectual

property or its exploitation, the value of our investments may be undermined and our business, financial condition and results of operations

may be negatively impacted.

Our platform contains

third-party open source software components, and failure to comply with the terms of the underlying open source software licenses could

restrict our ability to provide our offerings.

Our platform contains

software modules licensed to us by third-party authors under “open source” licenses.

Use and distribution of open source

software may entail greater risks than use of third-party commercial software, as open source licensors generally do not provide support,

warranties, indemnification or other contractual protections regarding infringement claims or the quality of the code.

In addition, the

public availability of such software may make it easier for others to compromise our platform.

Some open source

14 unchanged sentences

code, any of which could adversely affect our business, financial condition and results of operations.

Our business and results of operations

are also subject to global economic conditions, including any resulting effect on spending by us or our riders.

If general economic conditions

deteriorate in China or in other markets where we operate, discretionary spending may decline and demand for ridesharing may be reduced.

An economic downturn resulting in a prolonged recessionary period may have a further adverse effect on our revenue.

Failure to maintain our reputation and brand image could negatively

impact our business.

Our brand has received a certain level

of recognition in mainland China, Hong Kong.

Our success depends on our ability to maintain and enhance our brand image and reputation.

Our business and

results of operations are also subject to global economic conditions, including any resulting effect on spending by us or our riders.

If general economic conditions deteriorate in China or in other markets where we operate, discretionary spending may decline and demand

for ridesharing may be reduced.

An economic downturn resulting in a prolonged recessionary period may have a further adverse effect on

Failure to maintain our reputation and

brand image could negatively impact our business.

Our brand has

received a certain level of recognition in mainland China, Hong Kong.

Our success depends on our ability to maintain and enhance our

brand image and reputation.

We could be adversely affected if our brand is tarnished or receives negative publicity.

In addition, adverse publicity about regulatory

or legal action against us could damage our reputation and brand image, undermine consumer confidence in us, and reduce long-term demand

for our products, even if the regulatory or legal action is unfounded or not material to our operations.

In addition, our success in maintaining,

extending and expanding our brand image depends on our ability to adapt to a rapidly changing media and internet environment, including

our reliance on online advertising.

Negative posts or comments about us on social networking websites could seriously damage our reputation

and brand image.

If we do not maintain, extend and expand our brand image, our product sales, financial condition or results of operations

could be materially and adversely affected.

Our success is dependent on retaining key personnel who would

be difficult to replace.

Our success depends largely on the continued

services of our key management members.

adverse publicity about regulatory or legal action against us could damage our reputation and brand image, undermine consumer

confidence in us, and reduce long-term demand for our products, even if the regulatory or legal action is unfounded or not material

to our operations.

In addition, our

success in maintaining, extending and expanding our brand image depends on our ability to adapt to a rapidly changing media and internet

environment, including our reliance on online advertising.

Negative posts or comments about us on social networking websites could seriously

damage our reputation and brand image.

If we do not maintain, extend and expand our brand image, our product sales, financial condition

or results of operations could be materially and adversely affected.

Our success is dependent on retaining key

personnel who would be difficult to replace.

Our success depends

largely on the continued services of our key management members.

In particular, our success depends on the continued efforts of Ms.

Wenxian Fan, our founder and

Chief Executive Officer, President and Director.

Fan, our founder and Chief Executive Officer, President and Director.

There can be no assurance that Ms.

Fan will continue in her present capacities for any

particular period of time.

Fan will continue in her present

capacities for any particular period of time.

The loss of the services of Ms.

Fan could materially and adversely affect our business development and our

ability to expand and grow.

The legal requirements associated with being a public company,

including those contained in and issued under the Sarbanes-Oxley Act, may make it difficult for us to retain or attract qualified officers

and directors, which could adversely affect the management of our business and our ability to obtain listing of our common stock .

may be unable to attract and retain qualified officers and directors necessary to provide for our effective management because of the

rules and regulations that govern publicly listed companies, including, but not limited to, certifications by principal executive officers.

Fan could materially and adversely affect our business

development and our ability to expand and grow.

The legal requirements associated with

being a public company, including those contained in and issued under the Sarbanes-Oxley Act, may make it difficult for us to retain

or attract qualified officers and directors, which could adversely affect the management of our business and our ability to obtain listing

of our common stock .

We may be unable

to attract and retain qualified officers and directors necessary to provide for our effective management because of the rules and regulations

that govern publicly listed companies, including, but not limited to, certifications by principal executive officers.

our Chief Executive Officer does not have extensive experience in operating a U.S.

6 unchanged sentences

in finance and accounting matters, may make it difficult to attract and retain qualified board members going forward.

we are unable to attract and retain qualified officers and directors, the management of our business and our ability to obtain or retain

are unable to attract and retain qualified officers and directors, the management of our business and our ability to obtain or retain

the listing of our common stock on any stock exchange (assuming we are able to obtain such listing) could be adversely affected.

we fail to establish and maintain an effective system of internal controls, we may not be able to report our financial results accurately

or prevent fraud.

Any inability to report and file our financial results accurately and timely could harm our

business and adversely impact the trading price of our common stock .

are required to establish and maintain internal controls over financial reporting, disclosure controls and to comply with other requirements

of the Sarbanes-Oxley Act and the rules promulgated by the U.S.

Securities and Exchange Commission (the “SEC”) thereunder.

If we fail to establish and maintain an

effective system of internal controls, we may not be able to report our financial results accurately or prevent fraud.

Any inability

to report and file our financial results accurately and timely could harm our business and adversely impact the trading price of our

common stock .

required to establish and maintain internal controls over financial reporting, disclosure controls and to comply with other

requirements of the Sarbanes-Oxley Act and the rules promulgated by the U.S.

Securities and Exchange Commission (the

“SEC”) thereunder.

Our senior management, which currently consists of Ms.

Fan, cannot guarantee that our internal controls and disclosure procedures will

prevent all possible errors or all fraud.

A control system, no matter how well conceived and operated, can provide only reasonable, not

absolute, assurance that the objectives of the control system are met.

In addition, the design of a control system must reflect the fact

that there are resource constraints and the benefit of controls must be relative to their costs.

Because of the inherent limitations in

all control systems, no system of controls can provide absolute assurance that all control issues and instances of fraud, if any, within

our company have been detected.

These inherent limitations include the realities that judgments in decision-making can be faulty and that

breakdowns can occur because of simple error or mistake.

Further, controls can be circumvented by individu al acts of some persons,

by collusion of two or more persons, or by management’s override of the controls.

The design of any system of controls is also based

in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in

achieving its stated goals under all potential future conditions.

control may become inadequate because of changes in conditions or the degree of compliance with policies or procedures may deteriorate.

Because of inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected.

Operating as a public company requires us to incur substantial

costs and requires substantial management attention.

In addition, key members of our management team have limited experience managing

a public company.

a public company, we will incur substantial legal, accounting and other expenses that we did not incur as a private company.

we are subject to the reporting requirements of the Exchange Act, the applicable requirements of the Sarbanes-Oxley Act, the Dodd-Frank

Wall Street Reform and Consumer Protection Act, the rules and regulations of the SEC.

For example, the Exchange Act requires, among other

things, we file annual, quarterly and current reports with respect to our business, financial condition and results of operations.

Fan, cannot guarantee that our internal

controls and disclosure procedures will prevent all possible errors or all fraud.

A control system, no matter how well conceived and

operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

In addition, the

design of a control system must reflect the fact that there are resource constraints and the benefit of controls must be relative to

Because of the inherent limitations in all control systems, no system of controls can provide absolute assurance that

all control issues and instances of fraud, if any, within our company have been detected.

These inherent limitations include the

realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.

controls can be circumvented by individual acts of some persons, by collusion of two or more persons, or by management’s

override of the controls.

The design of any system of controls is also based in part upon certain assumptions about the likelihood

of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential

future conditions.

Over time, a control may become inadequate because of changes in conditions or the degree of compliance with

policies or procedures may deteriorate.

Because of inherent limitations in a cost-effective control system, misstatements due to

error or fraud may occur and may not be detected.

Operating as a public company requires

us to incur substantial costs and requires substantial management attention.

In addition, key members of our management team have limited

experience managing a public company.

As a public company,

we will incur substantial legal, accounting and other expenses that we did not incur as a private company.

For example, we are subject

to the reporting requirements of the Exchange Act, the applicable requirements of the Sarbanes-Oxley Act, the Dodd-Frank Wall Street

Reform and Consumer Protection Act, the rules and regulations of the SEC.

For example, the Exchange Act requires, among other things,

we file annual, quarterly and current reports with respect to our business, financial condition and results of operations.

with these rules and regulations will increase our legal and financial compliance costs, and increase demand on our systems, particularly

3 unchanged sentences

currently anticipate.

As a result of disclosure of informati on in this prospectus and in filings required of a public company,

our business and financial condition will become more visible, which may result in threatened or actual litigation, including by competitors.

As a result of disclosure of information in this prospectus and in filings required of a public company, our business

and financial condition will become more visible, which may result in threatened or actual litigation, including by competitors.

Our current management

8 unchanged sentences

Risks Related to Doing Business in China

Changes in the political and economic policies of the PRC government

may materially and adversely affect our business, financial condition and results of operations and may result in our inability to sustain

our growth and expansion strategies.

Most of our operations are conducted

in the PRC and a significant percentage of our revenue is sourced from the PRC.

Accordingly, our financial condition and results of operations

are affected to a significant extent by economic, political and legal developments in the PRC or changes in government relations between

China and the United States or other governments.

There is significant uncertainty about the future relationship between the United States

and China with respect to trade policies, treaties, government regulations and tariffs.

PRC economy differs from the economies of most developed countries in many respects, including the extent of government involvement, level

of development, growth rate, control of foreign exchange and allocation of resources.

Although the PRC government has implemented measures

emphasizing the utilization of market forces for economic reform, the reduction of state ownership of productive assets, and the establishment

of improved corporate governance in business enterprises, a substantial portion of productive assets in China is still owned by the government.

Changes in the political and economic policies

of the PRC government may materially and adversely affect our business, financial condition and results of operations and may result

in our inability to sustain our growth and expansion strategies.

Most of our operations

are conducted in the PRC and a significant percentage of our revenue is sourced from the PRC.

Accordingly, our financial condition and

results of operations are affected to a significant extent by economic, political and legal developments in the PRC or changes in government

relations between China and the United States or other governments.

There is significant uncertainty about the future relationship between

the United States and China with respect to trade policies, treaties, government regulations and tariffs.

The PRC economy

differs from the economies of most developed countries in many respects, including the extent of government involvement, level of development,

growth rate, control of foreign exchange and allocation of resources.

Although the PRC government has implemented measures emphasizing

the utilization of market forces for economic reform, the reduction of state ownership of productive assets, and the establishment of

improved corporate governance in business enterprises, a substantial portion of productive assets in China is still owned by the government.

In addition, the PRC government continues to play a significant role in regulating industry development by imposing industrial policies.

1 unchanged sentence

of foreign currency-denominated obligations, setting monetary policy, regulating financial services and institutions and providing preferential

treatment to particular industries or companie s.

the PRC economy has experienced significant growth in the past three decades, growth has been uneven, both geographically and among various

sectors of the economy.

treatment to particular industries or companies.

While the PRC economy

has experienced significant growth in the past three decades, growth has been uneven, both geographically and among various sectors of

The PRC government has implemented various measures to encourage economic growth and guide the allocation of resources.

6 unchanged sentences

These measures may cause decreased economic activity, which in turn could lead to a reduction

in demand for our services and consequently have a material adverse effect on our businesses, financial condition

and results of operations.

July 2021, the Chinese government provided new guidance on China-based companies raising capital outside of China, including through VIE

arrangements.

In light of such developments, the SEC has imposed enhanced disclosure requirements on China-based companies seeking to

in demand for our services and consequently have a material adverse effect on our businesses, financial condition and results of operations.

In July 2021, the

Chinese government provided new guidance on China-based companies raising capital outside of China, including through VIE arrangements.

In light of such developments, the SEC has imposed enhanced disclosure requirements on China-based companies seeking to register securities

with the SEC.

As substantially all of our operations are based in China, any future Chinese, U.S.

or other rules and

regulations that place restrictions on capital raising or other activities by China based companies could adversely affect our business

and results of operations.

If the business environment in China deteriorates from the perspective of domestic or international investment,

or if relations between China and the United States or other governments deteriorate, the Chinese government may intervene with our operations

and our busine ss in China and United States, as well as the market price of our common stock, may also be adversely affected.

There are uncertainties regarding the interpretation and enforcement

of PRC laws, rules and regulations.

Most of our operations are conducted in the PRC,

and are governed by PRC laws, rules and regulations.

Our PRC subsidiary are subject to laws, rules and regulations applicable to foreign

investment in China.

or other rules and regulations that

place restrictions on capital raising or other activities by China based companies could adversely affect our business and results of

If the business environment in China deteriorates from the perspective of domestic or international investment, or if relations

between China and the United States or other governments deteriorate, the Chinese government may intervene with our operations and our

business in China and United States, as well as the market price of our common stock, may also be adversely affected.

There are uncertainties regarding the interpretation

and enforcement of PRC laws, rules and regulations.

Most of our operations are

conducted in the PRC, and are governed by PRC laws, rules and regulations.

Our PRC subsidiary are subject to laws, rules and regulations

applicable to foreign investment in China.

The PRC legal system is a civil law system based on written statutes.

Unlike the common law system, prior court decisions

may be cited for reference but have limited precedential value.

1979, the PRC government began to promulgate a comprehensive system of laws, rules and regulations governing economic matters in general.

The overall effect of legislation over the past four decades has significantly enhanced the protections afforded to various forms of foreign

investment in China.

However, China has not developed a fully integrated legal system, and recently enacted laws, rules and regulations

may not sufficiently cover all aspects of economic activities in China or may be subject to significant degrees of interpretation by PRC

regulatory agencies.

In particular, because these laws, rules and regulations are relatively new, and because of the limited number of

published decisions and the nonbinding nature of such decisions, and because the laws, rules and regulations often give the relevant regulator

significant discretion in how to enforce them, the interpretation and enforcement of these laws, rules and regulations involve uncertainties

and can be inconsistent and unpredictable.

In addi tion, the PRC legal system is based in part on government policies and internal

rules, some of which are not published on a timely basis or at all, and which may have a retroactive effect.

As a result, we may not be

aware of our violation of these policies and rules until after the occurrence of the violation.

Any administrative and court proceedings in China

may be protracted, resulting in substantial costs and diversion of resources and management attention.

Since PRC administrative and court

authorities have significant discretion in interpreting and implementing statutory and contractual terms, it may be more difficult to

evaluate the outcome of administrative and court proceedings and the level of legal protection we enjoy than in more developed legal systems.

These uncertainties may impede our ability to enforce the contracts we have entered into and could materially and adversely affect our

business, financial condition and results of operations.

Recently, the General Office of the Central Committee

of the Communist Party of China and the General Office of the State Council jointly issued the “Opinions on Severely Cracking Down

on Illegal Securities Activities According to Law,” or the Opinions, which was made available to the public on July 6, 2021.

Opinions emphasized the need to strengthen the administration over illegal securities activities, and the need to strengthen the supervision

over overseas listings by Chinese companies.

Effective measures, such as promoting the construction of relevant regulatory systems will

be taken to deal with the risks and incidents of China-concept overseas listed companies, and cybersecurity and data privacy protection

requirements and similar matters.

The Opinions remain unclear on how the law will be interpreted, amended and implemented by the relevant

PRC governmental authorities, but the Opinions and any related implementing rules to be enacted may subject us to compliance requirements

in the future.

On July 10, 2021, the Cyberspace Administration

of China issued a revised draft of the Measures for Cybersecurity Review for public comments, which required that, among others, in addition

to “operator of critical information infrastructure”, any “data processor” controlling personal information of

no less than one million users which seeks to list in a foreign stock exchange should also be subject to cybersecurity review, and further

elaborated the factors to be considered when assessing the national security risks of the relevant activities.

On November 14, 2021, the Cyberspace Administration

of China released the Regulations on Network Data Security (draft for public comments) and accepted public comments until December 13,

The draft Regulations on Network Data Security provide that data processors refer to individuals or organizations that autonomously

determine the purpose and the manner of processing data.

If a data processor that processes personal data of more than one million users

intends to list overseas, it shall apply for a cybersecurity review.

In addition, data processors that process important data or are listed

overseas shall carry out an annual data security assessment on their own or by engaging a data security services institution, and the

data security assessment report for the prior year should be submitted to the local cyberspace affairs administration department before

January 31 of each year.

On December 28, 2021, the Measures for Cybersecurity

Review (2021 version) was promulgated and took effect on February 15, 2022, which iterates that any “online platform operators”

controlling personal information of more than one million users which seeks to list in a foreign stock exchange should also be subject

to cybersecurity review.

Further, Measures for Cybersecurity Review (2021 version) was recently adopted and the Network Internet Data

Protection Draft Regulations (draft for comments) is in the process of being formulated and the Opinions remain unclear on how it will

be interpreted, amended and implemented by the relevant PRC governmental authorities.

February 24, 2023, the CSRC, the Ministry of Finance, the National Administration of State Secrets Protection and the National Archives

Administration jointly issued the Provisions on Strengthening Confidentiality and Archives Administration of Overseas Securities Offering

and Listing by Domestic Companies, or the Confidentiality and Archives Provisions (the “CAP”), which will take effective from

March 31, 2023.

The Confidentiality and Archives Provisions specify that during the overseas issuance of securities and listing activities

of domestic enterprises, domestic enterprises and securities companies and securities service institutions that provide relevant securities

services shall, by strictly abiding by the relevant laws and regulations of the PRC and the requirements therein, establish sound confidentiality

and archives management systems, take necessary measures to implement confidentiality and archives management responsibilities, and shall

not leak national secrets, work secrets of governmental ag encies and undermine national and public interests.

Work manuscripts

generated in the PRC by securities companies and securities service institutions that provide relevant securities services for overseas

issuance and listing of securities by domestic enterprises shall be kept in the PRC.

Without the approval of relevant competent authorities,

it shall not be transferred overseas.

Where archives or copies need to be transferred outside of the PRC, it shall be subject to the approval

procedures in accordance with relevant PRC regulations.

Based on the Company’s understanding of the

current PRC laws, as of the date of this report, we are of the view as a result of:

(i) we do not hold personal information on more than

one million users in our business operations and (ii) data processed in our business does not have a bearing on national security and

thus may not be classified as core or important data by the authorities, we are not required to apply for a cybersecurity review under

the Measures for Cybersecurity Review (2021 version).

Further, the business of our Hong Kong subsidiary, Pony HK is not subject to cybersecurity

review with the CAC, given that PRC laws on data protection and cybersecurity do not currently apply to Hong Kong.

In addition, the CSRC

currently has not issued any definitive rule or interpretation concerning whether we are subject to the CAP.

On December 24, 2021, the CSRC released the Administrative

Provisions of the State Council Regarding the Overseas Issuance and Listing of Securities by Domestic Enterprises (Draft for Comments)

and the Measures for the Overseas Issuance of Securities and Listing Record-Filings by Domestic Enterprises (Draft for Comments) (both,

the “Draft Rules”), both of which had a comment period that expired on January 23, 2022, and if enacted, may subject us to

additional compliance requirement in the future.

February 17, 2023, the CSRC promulgated the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies

(the “Trial Measures”), which will take effect on March 31, 2023.

The Trial Measures supersede the Draft Rules and clarified

and emphasized several aspects, which include but are not limited to:

(1) comprehensive determination of the “indirect overseas

offering and listing by PRC domestic companies” in compliance with the principle of “substance over form” and particularly,

an issuer will be required to go through the filing procedures under the Trial Measures if the following criteria are met at the same

a) 50% or more of the issuer’s operating revenue, total profit, t otal assets or net assets as documented in its audited

consolidated financial statements for the most recent accounting year is accounted for by PRC domestic companies, and b) the main parts

of the issuer’s business activities are conducted in mainland China, or its main places of business are located in mainland China,

or the senior managers in charge of its business operation and management are mostly Chinese citizens or domiciled in mainland China;

(2) exemptions from immediate filing requirements for issuers that a) have already been listed or registered but not yet listed in foreign

securities markets, including U.S.

markets, prior to the effective date of the Trial Measures, and b) are not required to re-perform the

regulatory procedures with the relevant overseas regulatory authority or the overseas stock exchange, and c) whose such overseas securities

offering or listing shall be completed before September 30, 2023, provided however that such issuers shall carry out filing procedures

as required if they conduct refinancing or are involved in other circumstances that require filing with the CSRC;

(3) a negative list

of types of issuers banned from listing or offering overseas, such as (a) issuers whose listing or offering overseas have been recognized

by the State Council of the PRC as possible threats to national security, (b) issuers whose affiliates have been recently convicted of

bribery and corruption, (c) issuers under ongoing criminal investigations, and (d) issuers under major disputes regarding equity ownership;

(4) issuers’ compliance with web security, data security, and other national security laws and regulations;

(5) issuers’ filing

and reporting obligations, such as obligation to file with the CSRC after it submits an application for initial public offering to overseas

regulators, and obligation after offering or listing overseas to report to the CSRC material events including change of control or voluntary

or forced delisting of the issuer;

and (6) the CSRC’s authority to fine both issuers and their shareholders between 1 and 10 million

RMB for failure to comply with the Trial Measures, including failure to comply with filing obligations or committing fraud and misrepresentation.

As a China-based issuer, we have determined that

we and our subsidiaries will not be required to comply with the filing requirements or procedures set forth in Trial Measures given that

we are already listed on an overseas exchange before the effective date of the Trial Measures of March 31, 2023.

Nevertheless, if the CSRC or other regulatory agencies

later promulgate new rules or explanations requiring that we obtain their approvals for this offering and any follow-on offering, we may

be unable to obtain such approvals which could significantly limit or completely hinder our ability to offer or continue to offer securities

to our investors.

Furthermore, the PRC government authorities may

strengthen oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers like us.

Such actions taken by the PRC government authorities may intervene or influence our operations at any time, which are beyond our control.

Therefore, any such action may adversely affect our operations and significantly limit or hinder our ability to offer or continue to offer

securities to you and reduce the value of such securities.

Uncertainties regarding the enforcement of laws

and the fact that rules and regulations in China can change quickly with little advance notice, along with the risk that the Chinese government

may intervene or influence our operations at any time, or may exert more control over offerings conducted overseas and/or foreign investment

in China-based issuers could result in a material change in our operations, financial performance and/or the value of our common stock

or impair our ability to raise money.

The PRC government exerts substantial influence over the manner in

which we conduct our business activities.

The PRC government may also intervene or influence our operations at any time, which could result

in a material change in our operations and our common stock could decline in value or become worthless.

advised by our PRC counsel, Beijing Haotai Law Firm, we currently have not received any notice or administrative order which require the

Company to obtain approval from Chinese authorities to list on U.S.

exchanges, however, if our holding company or any of our PRC

subsidiary were required to obtain approval in the future and were denied permission from Chinese authorities to list on U.S.

we will not be able to continue listing on U.S.

exchange, continue to offer securities to investors, or materially affect the interest

of the investors and cause significantly depreciation of our price of common stock.

Chinese government has exercised and continues to exercise substantial control over virtually every sector of the Chinese economy through

regulation and state ownership.

Our ability to operate in China may be harmed by changes in its laws and regulations, including those

relating to taxation, environmental regulations, land use rights, property and other matters.

The central or local governments of these

jurisdictions may impose new, stricter regulations or interpretations of existing regulations that would require additional expenditures

and efforts on our part to ensure our compliance with such regulations or interpretations.

Accordingly, government actions in the future,

including any decision not to continue to support recent economic reforms and to return to a more centrally planned economy or regional

or local variations in the implementati on of economic policies, could have a significant effect on economic conditions in China

or particular regions thereof, and could require us to divest ourselves o f

any interest we then hold in our operations in China.

For example, the Chinese cybersecurity regulator

announced on July 2, 2021, that it had begun an investigation of Didi Global Inc.

DIDI) and two days later ordered that the company’s

app be removed from smartphone app stores.

Similarly, our business segments may be subject to various government and regulatory interference

in the regions in which we operate.

We could be subject to regulation by various political and regulatory entities, including various

local and municipal agencies and government sub-divisions.

We may incur increased costs necessary to comply with existing and newly adopted

laws and regulations or penalties for any failure to comply.

it is uncertain when and whether we will be required to obtain permission from the PRC government to list on U.S.

exchanges in the future,

and even when such permission is obtained, whether it will be denied or rescinded.

Although we and our subsidiaries are currently not

required to obtain permission or approvals from any of the PRC or Hong Kong government or regulatory agencies, we have not received any

denial to list on the U.S.

exchange, our operations could be adversely affected, directly or indirectly, by existing or future laws and

regulations relating to our business or industry.

Recent statements by the Chinese government indicating an intent, and the PRC government

may take actions to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based

issuers, which could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause

the value of our securities to significantly decline or become worthless.

The CSRC has enacted the draft rules for China-based companies

seeking to conduct initial public offerings in foreign markets.

While such rules have not yet gone into effect and we have determined

we are not subject to the measures, the CSRC may exert more oversight and control over offerings that are conducted overseas and foreign

investment in China-based issuers, which could significantly limit or completely hinder our ability to offer or continue to offer our

common stock to investors and could cause the value of our common stock to significantly decline or become worthless.

On December 24, 2021, the CSRC released the Draft

Rules Regarding Overseas Listing (the “Draft Rules”), which had a comment period that expired on January 23, 2022.

Rules Regarding Overseas Listing lay out the filing regulation arrangement for both direct and indirect overseas listing, and clarify

the determination criteria for indirect overseas listing in overseas markets.

February 17, 2023, the CSRC promulgated the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies

(the “Trial Measures”), which will take effect on March 31, 2023.

The Trial Measures supersede the Draft Rules and clarified

and emphasized several aspects, which include but are not limited to:

(1) comprehensive determination of the “indirect overseas

offering and listing by PRC domestic companies” in compliance with the principle of “substance over form” and particularly,

an issuer will be requi red to go through the filing procedures under the Trial Measures if the following criteria are met at the

a) 50% or more of the issuer’s operating revenue, total profit, total assets or net assets as documented in its audited

consolidated financial statements for the most recent accounting year is accounted for by PRC domestic companies, and b) the main parts

of the issuer’s business activities are conducted in mainland China, or its main places of business are located in mainland China,

or the senior managers in charge of its business operation and management are mostly Chinese citizens or domiciled in mainland China;

(2) exemptions from immediate filing requirements for issuers that a) have already been listed or registered but not yet listed in foreign

securities markets, including U.S.

markets, prior to the effective date of the Trial Measures, and b) are not required to re-perform the

regulatory procedures with the relevant overseas regulatory authority or the overseas stock exchange, and c) whose such overseas securities

offering or listing shall be completed before September 30, 2023, provided however that such issuers shall carry out filing procedures

as required if they conduct refinancing or are involved in other circumstances that require filing with the CSRC;

(3) a negative list

of types of issuers banned from listing or offering overseas, such as (a) issuers whose listing or offering overseas have been recognized

by the State Council of the PRC as possible threats to national security, (b) issuers whose affiliates have been recently convicted of

bribery and corruption, (c) issuers under ongoing criminal investigations, and (d) issuers under major disputes regarding equity ownership;

(4) issuers’ compliance with web security, data security, and other national security laws and regulations;

(5) issuers’ filing

and reporting obligations, such as obligation to file with the CSRC after it submits an application for initial public offering to overseas

regulators, and obligation after offering or listing overseas to report to the CSRC material events including change of control or voluntary

or forced delisting of the issuer;

and (6) the CSRC’s authority to fine both issuers and their shareholders between 1 and 10 million

RMB for failure to comply with the Trial Measures, including failure to comply with filing obligations or committing fraud and misrepresentation.

As a China-based issuer, we have determined that

we and our subsidiaries will not be required to comply with the filing requirements or procedures set forth in Trial Measures given that

we are already listed on an overseas exchange before the effective date of the Trial Measures of March 31, 2023.

Nevertheless, if the CSRC or other regulatory agencies

later promulgate new rules or explanations requiring that we obtain their approvals for this offering and any follow-on offering, we may

be unable to obtain such approvals which could significantly limit or completely hinder our ability to offer or continue to offer securities

to our investors.

Furthermore, the PRC government authorities may

strengthen oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers like us.

Such actions taken by the PRC government authorities may intervene or influence our operations at any time, which are beyond our control.

Any failure of us to fully comply with new regulatory requirements may significantly limit or completely hinder our ability to offer or

continue to offer our common stock, cause significant disruption to our business operations, and severely damage our reputation, which

would materially and adversely affect our financial condition and results of operations and cause our common stock to significantly decline

in value or become worthless.

Failure to make adequate contributions to various employee benefit

plans and withhold individual income tax on employees’ salaries as required by PRC regulations may subject us to penalties.

operating in China are required to participate in various government-mandated employee benefit contribution plans, including certain social

insurance, housing funds and other welfare-oriented payment obligations, and contribute to the plans in amounts equal to certain percentages

of salaries, including bonuses and allowances, of our employees up to a maximum amount specified by the local government from time to

time at locations where we operate our businesses.

The requirement of employee benefit contribution plans has not been implemented consistently

by the local governments in China given the different levels of economic development in different locations.

Unlike the common law

system, prior court decisions may be cited for reference but have limited precedential value.

In 1979, the PRC government

began to promulgate a comprehensive system of laws, rules and regulations governing economic matters in general.

The overall effect of

legislation over the past four decades has significantly enhanced the protections afforded to various forms of foreign investment in

However, China has not developed a fully integrated legal system, and recently enacted laws, rules and regulations may not sufficiently

cover all aspects of economic activities in China or may be subject to significant degrees of interpretation by PRC regulatory agencies.

In particular, because these laws, rules and regulations are relatively new, and because of the limited number of published decisions

and the nonbinding nature of such decisions, and because the laws, rules and regulations often give the relevant regulator significant

discretion in how to enforce them, the interpretation and enforcement of these laws, rules and regulations involve uncertainties and

can be inconsistent and unpredictable.

In addition, the PRC legal system is based in part on government policies and internal rules,

some of which are not published on a timely basis or at all, and which may have a retroactive effect.

As a result, we may not be aware

of our violation of these policies and rules until after the occurrence of the violation.

Any administrative and court

proceedings in China may be protracted, resulting in substantial costs and diversion of resources and management attention.

administrative and court authorities have significant discretion in interpreting and implementing statutory and contractual terms, it

may be more difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we enjoy than

in more developed legal systems.

These uncertainties may impede our ability to enforce the contracts we have entered into and could materially

and adversely affect our business, financial condition and results of operations.

Recently, the General

Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the

“Opinions on Severely Cracking Down on Illegal Securities Activities According to Law,” or the Opinions, which was made

available to the public on July 6, 2021.

The Opinions emphasized the need to strengthen the administration over illegal securities

activities, and the need to strengthen the supervision over overseas listings by Chinese companies.

Effective measures, such as

promoting the construction of relevant regulatory systems will be taken to deal with the risks and incidents of China-concept

overseas listed companies, and cybersecurity and data privacy protection requirements and similar matters.

The Opinions remain

unclear on how the law will be interpreted, amended and implemented by the relevant PRC governmental authorities, but the Opinions

and any related implementing rules to be enacted may subject us to compliance requirements in the future.

On July 10, 2021, the Cyberspace

Administration of China issued a revised draft of the Measures for Cybersecurity Review for public comments, which required that, among

others, in addition to “operator of critical information infrastructure”, any “data processor” controlling personal

information of no less than one million users which seeks to list in a foreign stock exchange should also be subject to cybersecurity

review, and further elaborated the factors to be considered when assessing the national security risks of the relevant activities.

On November 14, 2021, the

Cyberspace Administration of China released the Regulations on Network Data Security (draft for public comments) and accepted public

comments until December 13, 2021.

The draft Regulations on Network Data Security provide that data processors refer to individuals or

organizations that autonomously determine the purpose and the manner of processing data.

If a data processor that processes personal

data of more than one million users intends to list overseas, it shall apply for a cybersecurity review.

In addition, data processors

that process important data or are listed overseas shall carry out an annual data security assessment on their own or by engaging a data

security services institution, and the data security assessment report for the prior year should be submitted to the local cyberspace

affairs administration department before January 31 of each year.

On December 28, 2021, the

Measures for Cybersecurity Review (2021 version) was promulgated and took effect on February 15, 2022, which iterates that any “online

platform operators” controlling personal information of more than one million users which seeks to list in a foreign stock exchange

should also be subject to cybersecurity review.

Further, Measures for Cybersecurity Review (2021 version) was recently adopted and the

Network internet Data Protection Draft Regulations (draft for comments) is in the process of being formulated and the Opinions remain

unclear on how it will be interpreted, amended and implemented by the relevant PRC governmental authorities.

On February 24, 2023, the

CSRC, the Ministry of Finance, the National Administration of State Secrets Protection and the National Archives Administration jointly

issued the Provisions on Strengthening Confidentiality and Archives Administration of Overseas Securities Offering and Listing by Domestic

Companies, or the Confidentiality and Archives Provisions (the “CAP”), which will take effective from March 31, 2023.

Confidentiality and Archives Provisions specify that during the overseas issuance of securities and listing activities of domestic enterprises,

domestic enterprises and securities companies and securities service institutions that provide relevant securities services shall, by

strictly abiding by the relevant laws and regulations of the PRC and the requirements therein, establish sound confidentiality and archives

management systems, take necessary measures to implement confidentiality and archives management responsibilities, and shall not leak

national secrets, work secrets of governmental agencies and undermine national and public interests.

Work manuscripts generated in the

PRC by securities companies and securities service institutions that provide relevant securities services for overseas issuance and listing

of securities by domestic enterprises shall be kept in the PRC.

Without the approval of relevant competent authorities, it shall not

be transferred overseas.

Where archives or copies need to be transferred outside of the PRC, it shall be subject to the approval procedures

in accordance with relevant PRC regulations.

Company’s understanding of the current PRC laws, as of the date of this report, we are of the view as a result of:

not hold personal information on more than one million users in our business operations and (ii) data processed in our business does

not have a bearing on national security and thus may not be classified as core or important data by the authorities, we are not

required to apply for a cybersecurity review under the Measures for Cybersecurity Review (2021 version).

Further, the business of

our Hong Kong subsidiary, Pony HK is not subject to cybersecurity review with the CAC, given that PRC laws on data protection and

cybersecurity do not currently apply to Hong Kong.

In addition, the CSRC currently has not issued any definitive rule or

interpretation concerning whether we are subject to the CAP.

On December 24, 2021, the

CSRC released the Administrative Provisions of the State Council Regarding the Overseas Issuance and Listing of Securities by Domestic

Enterprises (Draft for Comments) and the Measures for the Overseas Issuance of Securities and Listing Record-Filings by Domestic Enterprises

(Draft for Comments) (both, the “Draft Rules”), both of which had a comment period that expired on January 23, 2022, and

if enacted, may subject us to additional compliance requirement in the future.

On February 17, 2023, the

CSRC promulgated the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies (the “Trial

Measures”), which will take effect on March 31, 2023.

The Trial Measures supersede the Draft Rules and clarified and emphasized

several aspects, which include but are not limited to:

(1) comprehensive determination of the “indirect overseas offering and listing

by PRC domestic companies” in compliance with the principle of “substance over form” and particularly, an issuer will

be required to go through the filing procedures under the Trial Measures if the following criteria are met at the same time:

more of the issuer’s operating revenue, total profit, total assets or net assets as documented in its audited consolidated financial

statements for the most recent accounting year is accounted for by PRC domestic companies, and b) the main parts of the issuer’s

business activities are conducted in mainland China, or its main places of business are located in mainland China, or the senior managers

in charge of its business operation and management are mostly Chinese citizens or domiciled in mainland China;

(2) exemptions from immediate

filing requirements for issuers that a) have already been listed or registered but not yet listed in foreign securities markets, including

markets, prior to the effective date of the Trial Measures, and b) are not required to re-perform the regulatory procedures with

the relevant overseas regulatory authority or the overseas stock exchange, and c) whose such overseas securities offering or listing

shall be completed before September 30, 2023, provided however that such issuers shall carry out filing procedures as required if they

conduct refinancing or are involved in other circumstances that require filing with the CSRC;

(3) a negative list of types of issuers

banned from listing or offering overseas, such as (a) issuers whose listing or offering overseas have been recognized by the State Council

of the PRC as possible threats to national security, (b) issuers whose affiliates have been recently convicted of bribery and corruption,

compliance with web security, data security, and other national security laws and regulations;

(5) issuers’ filing and reporting

obligations, such as obligation to file with the CSRC after it submits an application for initial public offering to overseas regulators,

and obligation after offering or listing overseas to report to the CSRC material events including change of control or voluntary or forced

delisting of the issuer;

and (6) the CSRC’s authority to fine both issuers and their shareholders between 1 and 10 million RMB

for failure to comply with the Trial Measures, including failure to comply with filing obligations or committing fraud and misrepresentation.

As a China-based issuer,

we have determined that we and our subsidiaries will not be required to comply with the filing requirements or procedures set forth in

Trial Measures given that we are already listed on an overseas exchange before the effective date of the Trial Measures of March 31,

Nevertheless, if the CSRC

or other regulatory agencies later promulgate new rules or explanations requiring that we obtain their approvals for this offering and

any follow-on offering, we may be unable to obtain such approvals which could significantly limit or completely hinder our ability to

offer or continue to offer securities to our investors.

Furthermore, the PRC government

authorities may strengthen oversight and control over offerings that are conducted overseas and/or foreign investment in China-based

issuers like us.

Such actions taken by the PRC government authorities may intervene or influence our operations at any time, which are

beyond our control.

Therefore, any such action may adversely affect our operations and significantly limit or hinder our ability to offer

or continue to offer securities to you and reduce the value of such securities.

Uncertainties regarding the

enforcement of laws and the fact that rules and regulations in China can change quickly with little advance notice, along with the risk

that the Chinese government may intervene or influence our operations at any time, or may exert more control over offerings conducted

overseas and/or foreign investment in China-based issuers could result in a material change in our operations, financial performance

and/or the value of our common stock or impair our ability to raise money.

The PRC government exerts substantial influence

over the manner in which we conduct our business activities.

The PRC government may also intervene or influence our operations at any

time, which could result in a material change in our operations and our common stock could decline in value or become worthless.

As advised by our PRC counsel,

Beijing Haotai Law Firm, we currently have not received any notice or administrative order which require the Company to obtain approval

from Chinese authorities to list on U.S.

exchanges, however, if our holding company or any of our PRC subsidiary were required

to obtain approval in the future and were denied permission from Chinese authorities to list on U.S.

exchanges, we will not be able to

continue listing on U.S.

exchange, continue to offer securities to investors, or materially affect the interest of the investors and

cause significantly depreciation of our price of common stock.

The Chinese government has

exercised and continues to exercise substantial control over virtually every sector of the Chinese economy through regulation and state

Our ability to operate in China may be harmed by changes in its laws and regulations, including those relating to taxation,

environmental regulations, land use rights, property and other matters.

The central or local governments of these jurisdictions may impose

new, stricter regulations or interpretations of existing regulations that would require additional expenditures and efforts on our part

to ensure our compliance with such regulations or interpretations.

Accordingly, government actions in the future, including any decision

not to continue to support recent economic reforms and to return to a more centrally planned economy or regional or local variations

in the implementation of economic policies, could have a significant effect on economic conditions in China or particular regions thereof,

and could require us to divest ourselves of any interest we then hold in our operations in China.

For example, the Chinese

cybersecurity regulator announced on July 2, 2021, that it had begun an investigation of Didi Global Inc.

DIDI) and two days later

ordered that the company’s app be removed from smartphone app stores.

Similarly, our business segments may be subject to various

government and regulatory interference in the regions in which we operate.

We could be subject to regulation by various political and

regulatory entities, including various local and municipal agencies and government sub-divisions.

We may incur increased costs necessary

to comply with existing and newly adopted laws and regulations or penalties for any failure to comply.

Furthermore, it is uncertain

when and whether we will be required to obtain permission from the PRC government to list on U.S.

exchanges in the future, and even when

such permission is obtained, whether it will be denied or rescinded.

Although we and our subsidiaries are currently not required to obtain

permission or approvals from any of the PRC or Hong Kong government or regulatory agencies, we have not received any denial to list on

exchange, our operations could be adversely affected, directly or indirectly, by existing or future laws and regulations relating

to our business or industry.

Recent statements by the Chinese government indicating an intent, and the PRC government may take actions

to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers, which

could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value

of our securities to significantly decline or become worthless.

Failure to make adequate contributions

to various employee benefit plans and withhold individual income tax on employees’ salaries as required by PRC regulations may

subject us to penalties.

Companies operating in China

are also required to withhold individual income tax on employees’ salaries based on the actual salary of each employee upon payment.

are required to participate in various government-mandated employee benefit contribution plans, including certain social insurance, housing

funds and other welfare-oriented payment obligations, and contribute to the plans in amounts equal to certain percentages of salaries,

including bonuses and allowances, of our employees up to a maximum amount specified by the local government from time to time at locations

where we operate our businesses.

The requirement of employee benefit contribution plans has not been implemented consistently by the

local governments in China given the different levels of economic development in different locations.

Companies operating in China are

also required to withhold individual income tax on employees’ salaries based on the actual salary of each employee upon payment.

We may be subject to late fees and fines in relation to the underpaid employee benefits and under-withheld individual income tax, our

financial condition and results of operations may be adversely affected.

We must remit the offering proceeds

to China before they may be used to benefit our business in China, and we cannot assure that we can finish all necessary governmental

registration processes in a timely manner.

an offshore holding company of our PRC operating subsidiary, we may make loans to our PRC subsidiary subject to the approval, registration,

and filing with governmental authorities and limitation of amount, or we may make additional capital contributions to our PRC subsidiary.

Any shareholder loan to our PRC subsidiary, which is treated as a foreign-invested enterprise under PRC law, is subject to foreign exchange

loan registration with the local counterpart of the State Administration of Foreign Exchange, or SAFE.

Furthermore, loans by us to our

PRC subsidiary to finance its activities cannot exceed statutory limits and must be registered with the local counterpart of the SAFE

and capital contributions to our PRC subsidiary are subject to the requirement of making necessary filings in the Foreign Investment Comprehensive

Management Information System of the MOFCOM, registration with the local counterpart of the State Administration for Market Regulation,

or the SAMR, and the SAFE registration through loca l commercial banks in China.

In addition, a foreign invested enterprise shall

use its capital pursuant to the principle of authenticity and self-use within its business scope.

capital of a foreign invested enterprise shall not be used for the following purposes:

(i)directly or indirectly used for payment beyond

the business scope of the enterprises or the payment prohibited by relevant laws and regulations;

(ii) directly or indirectly used

for investment in securities or investments other than banks’ principal secured products unless otherwise provided by relevant laws

and regulations;

(iii) the granting of loans to non-affiliated enterprises, except where it is expressly permitted in the business license;

and (iv) paying the expenses related to the purchase of real estate that is not for self-use (except for the foreign-invested real estate

enterprises).

In light of the various requirements

imposed by PRC regulations on loans to, and direct investment in, PRC entities by offshore holding companies, we cannot assure you that

we will be able to complete the necessary government registrations or obtain the necessary government approvals on a timely basis, if

at all, with respect to future loans by us to our PRC subsidiary or with respect to future capital contributions by us to our PRC subsidiary.

If we fail to complete such registrations or obtain such approvals, our ability to use the proceeds from this offering and to capitalize

or otherwise fund our PRC operations may be negatively affected, which could materially and adversely affect our liquidity, our ability

to fund and expand our business and our common stock.

If relations between the United States and China worsen, investors

may be unwilling to hold or buy our stock and our stock price may decrease .

At various times during recent years,

the U.S and China have had significant disagreements over political and economic issues.

Controversies may arise in the future between

these two countries that may affect our economic outlook both in the U.S and in China.

Any political or trade controversies between the

U.S and China, whether or not directly related to our business, could reduce the price of our common stock.

The fluctuation of the Renminbi may have a material adverse effect

on your investment.

exchange rates between the Renminbi and the U.S.

dollar and other foreign currencies are affected by, among other things, changes in China’s

political and economic conditions.

If relations between the United States

and China worsen, investors may be unwilling to hold or buy our stock and our stock price may decrease .

At various times

during recent years, the U.S and China have had significant disagreements over political and economic issues.

Controversies may arise

in the future between these two countries that may affect our economic outlook both in the U.S and in China.

Any political or trade controversies

between the U.S and China, whether or not directly related to our business, could reduce the price of our common stock.

The fluctuation of the Renminbi may have

a material adverse effect on your investment.

The exchange rates

between the Renminbi and the U.S.

dollar and other foreign currencies are affected by, among other things, changes in China’s political

and economic conditions.

In July 2005, the PRC government changed its policy of pegging the value of the Renminbi to the U.S.

dollar, and the Renminbi was permitted to fluctuate within a band against a basket of certain foreign currencies.

As a result, the Renminbi

appreciated more than 20% against the U.S.

and the Renminbi was permitted to fluctuate within a band against a basket of certain foreign currencies.

As a result, the Renminbi appreciated

more than 20% against the U.S.

dollar over the following three years.

However, the People’s Bank of China regularly

intervenes in the foreign exchange market to limit fluctuations in Renminbi exchange rates and achieve policy goals.

For almost two years

after July 2008, the Renminbi traded within a very narrow range against the U.S.

However, the People’s Bank of China regularly intervenes

in the foreign exchange market to limit fluctuations in Renminbi exchange rates and achieve policy goals.

For almost two years after

July 2008, the Renminbi traded within a very narrow range against the U.S.

dollar, remaining within 1% of its July 2008 high.

a consequence, the Renminbi fluctuated significantly during that period against other freely traded currencies, in tandem with the U.S.

In June 2010, the PRC government announced that it would i ncrease exchange rate flexibility of the Renminbi.

remains unclear how this flexibility might be implemented.

There remains significant international pressure on the PRC government to adopt

a more flexible currency policy, which could result in a further and more significant appreciation of the Renminbi against the U.S.

we rely on fees paid to us by our subsidiary and affiliated consolidated entities in China, any significant revaluation of the Renminbi

could adversely affect our cash flows, revenues, earnings and financial position, and the value of, and any dividends payable on, shares

As a consequence,

the Renminbi fluctuated significantly during that period against other freely traded currencies, in tandem with the U.S.

2010, the PRC government announced that it would increase exchange rate flexibility of the Renminbi.

However, it remains unclear how

this flexibility might be implemented.

There remains significant international pressure on the PRC government to adopt a more flexible

currency policy, which could result in a further and more significant appreciation of the Renminbi against the U.S.

As we rely on

fees paid to us by our subsidiary and affiliated consolidated entities in China, any significant revaluation of the Renminbi could

adversely affect our cash flows, revenues, earnings and financial position, and the value of, and any dividends payable on, shares

of our common stock in foreign currency terms.

To the extent that we need to convert U.S.

dollars we received from our offering into Renminbi

for our operations, appreciation of the Renminbi against the U.S.

dollar would have an adverse effect on the Renminbi amount we would

receive from the conversion.

dollars we received from our offering into

Renminbi for our operations, appreciation of the Renminbi against the U.S.

dollar would have an adverse effect on the Renminbi

amount we would receive from the conversion.

Conversely, if we decide to convert our Renminbi into U.S.

dollars for the purpose of making payments for

dividends on our common stock or for other business purposes, appreciation of the U.S.

dollar against the Renminbi would have a negative

effect on the U.S.

dollars for the purpose of

making payments for dividends on our common stock or for other business purposes, appreciation of the U.S.

dollar against the

Renminbi would have a negative effect on the U.S.

dollar amount available to us.

In addition, since our functional and reporting currency is the U.S.

dollar while the

functional currency of our subsidiary and consolidated affiliated entities in China is Renminbi, appreciation

or depreciation in the value of the Renminbi relative to the U.S.

dollar would have a positive or negative effect on our reported financial

results, which might not reflect any underlying change in our business, financial condition or results of operations.

Restrictions on currency exchange may limit our ability to receive

and use our revenue effectively.

Substantially

all of our revenue is denominated in Renminbi.

In addition, since our functional and reporting

currency is the U.S.

dollar while the functional currency of our subsidiary and consolidated affiliated entities in China is

Renminbi, appreciation or depreciation in the value of the Renminbi relative to the U.S.

dollar would have a positive or negative

effect on our reported financial results, which might not reflect any underlying change in our business, financial condition or

results of operations.

Restrictions on currency exchange may limit

our ability to receive and use our revenue effectively.

Substantially all

of our revenue is denominated in Renminbi.

Renminbi is currently convertible under the “current account,” which includes

2 unchanged sentences

Currently, Universe Travel may purchase foreign

currency for settlement of “current account transactions,” including payment of dividends to us, without the approval of the

State Administration of Foreign Exchange (“SAFE”) by complying with certain procedural requirements.

currency for settlement of “current account transactions,” including payment of dividends to us, without the approval of

the State Administration of Foreign Exchange (“SAFE”) by complying with certain procedural requirements.

However, the relevant

PRC government al authorities may limit or eliminate our ability to purchase foreign currencies in the future for current account

transactions.

Since a significant amount of our future revenue will be denominated in Renminbi, any existing and future restrictions on

currency exchange may limit our ability to utilize revenue generated in Renminbi to fund our business activities outside of the PRC or

pay dividends in foreign currencies to our shareholders, including holders of our common stock.

Foreign exchange transactions under the

capital account remain subject to limitations and require approvals from, or registration with, SAFE and other relevant PRC governmental

PRC governmental authorities may limit or eliminate our ability to purchase foreign currencies in the future for current account transactions.

Since a significant amount of our future revenue will be denominated in Renminbi, any existing and future restrictions on currency exchange

may limit our ability to utilize revenue generated in Renminbi to fund our business activities outside of the PRC or pay dividends in

foreign currencies to our shareholders, including holders of our common stock.

Foreign exchange transactions under the capital account

remain subject to limitations and require approvals from, or registration with, SAFE and other relevant PRC governmental authorities.

This could affect our ability to obtain foreign currency through debt or equity financing for our subsidiaries.

Our subsidiaries and affiliated entities in China are subject

to restrictions on making dividends and other payments to us.

We are a holding company, and we rely

on dividends and other equity distributions paid by our PRC subsidiary for our cash and financing requirements, including the funds necessary

to pay dividends and other cash distributions to our shareholders and service any debt we may incur.

If our PRC subsidiary incurs debt

on its own behalf in the future, the instruments governing the debt may restrict their ability to pay dividends or make other distributions

PRC laws and regulations, Universe Travel is a wholly foreign-owned enterprise in China.

As such, Universe Travel may pay dividends only

out of its accumulated after-tax profits as determined in accordance with PRC accounting standards and regulations.

In addition, a wholly

foreign-owned enterprise is required to set aside at least 10% of its accumulated after-tax profits each year, if any, to fund certain

statutory reserve funds until the aggregate amount of such funds reaches 50% of its registered capital.

At its disc retion, a wholly

foreign-owned enterprise may allocate a portion of its after-tax profits based on PRC accounting standards to staff welfare and bonus

These reserve funds and staff welfare and bonus funds are not distributable as cash dividends.

Any limitation on the ability of our PRC subsidiary

to pay dividends or make other distributions to us could materially and adversely limit our ability to grow, make investments or acquisitions

that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.

The PRC’s legal and judicial system may not adequately

protect our business and operations and the rights of foreign investors.

The PRC legal and judicial system may

negatively impact foreign investors.

In 1982, the National People’s Congress amended the Constitution of China to authorize foreign

investment and guarantee the “lawful rights and interests” of foreign investors in the PRC.

However, the PRC’s system

of laws is not yet comprehensive.

The legal and judicial systems in the PRC are still rudimentary and enforcement of existing laws is

inconsistent.

As a result, it may be impossible to obtain swift and equitable enforcement of laws that do exist, or to obtain enforcement

of the judgment of one court by a court of another jurisdiction.

The PRC’s legal system is based on the civil law regime, that is,

it is based on written statutes.

A decision by one judge does not set a legal precedent that is required to be followed by judges in other

Our subsidiaries and affiliated entities

in China are subject to restrictions on making dividends and other payments to us.

We are a holding

company, and we rely on dividends and other equity distributions paid by our PRC subsidiary for our cash and financing requirements,

including the funds necessary to pay dividends and other cash distributions to our shareholders and service any debt we may incur.

our PRC subsidiary incurs debt on its own behalf in the future, the instruments governing the debt may restrict their ability to pay

dividends or make other distributions to us.

Under PRC laws

and regulations, Universe Travel is a wholly foreign-owned enterprise in China.

As such, Universe Travel may pay dividends only out of

its accumulated after-tax profits as determined in accordance with PRC accounting standards and regulations.

In addition, a wholly foreign-owned

enterprise is required to set aside at least 10% of its accumulated after-tax profits each year, if any, to fund certain statutory reserve

funds until the aggregate amount of such funds reaches 50% of its registered capital.

At its discretion, a wholly foreign-owned enterprise

may allocate a portion of its after-tax profits based on PRC accounting standards to staff welfare and bonus funds.

These reserve funds

and staff welfare and bonus funds are not distributable as cash dividends.

Any limitation on the ability

of our PRC subsidiary to pay dividends or make other distributions to us could materially and adversely limit our ability to grow, make

investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.

The PRC’s legal and judicial system

may not adequately protect our business and operations and the rights of foreign investors.

The PRC legal and judicial

system may negatively impact foreign investors.

In 1982, the National People’s Congress amended the Constitution of China to authorize

foreign investment and guarantee the “lawful rights and interests” of foreign investors in the PRC.

However, the PRC’s

system of laws is not yet comprehensive.

The legal and judicial systems in the PRC are still rudimentary and enforcement of existing

laws is inconsistent.

As a result, it may be impossible to obtain swift and equitable enforcement of laws that do exist, or to obtain

enforcement of the judgment of one court by a court of another jurisdiction.

The PRC’s legal system is based on the civil law regime,

that is, it is based on written statutes.

A decision by one judge does not set a legal precedent that is required to be followed by judges

in other cases.

In addition, the interpretation of Chinese laws may be varied to reflect domestic political changes.

The promulgation of new laws, changes

to existing laws and the pre-emption of local regulations by national laws may adversely affect foreign investors.

There can be no assurance

that a change in leadership, social or political disruption, or unforeseen circumstances affecting the PRC’s political, economic

or social life, will not affect the PRC government’s ability to continue to support and pursue these reforms.

Such a shift could

have a material adverse effect on our business and prospects.

Because our principal assets are located outside of the United

States, it may be difficult for you to enforce your rights based on U.S.

federal securities laws against us or to enforce a U.S.

judgment against us or our operating subsidiaries in the PRC and in Hong Kong

A substantial portion of our operations

and assets are located outside of the United States.

It may therefore be difficult for investors in the United States to enforce their

legal rights against us based on the civil liability provisions of the U.S.

federal securities laws against us in the courts of either

The promulgation of new laws,

changes to existing laws and the pre-emption of local regulations by national laws may adversely affect foreign investors.

be no assurance that a change in leadership, social or political disruption, or unforeseen circumstances affecting the PRC’s political,

economic or social life, will not affect the PRC government’s ability to continue to support and pursue these reforms.

could have a material adverse effect on our business and prospects.

Because our principal assets are located

outside of the United States, it may be difficult for you to enforce your rights based on U.S.

federal securities laws against us or

to enforce a U.S.

court judgment against us or our operating subsidiaries in the PRC and in Hong Kong

A substantial portion of

our operations and assets are located outside of the United States.

It may therefore be difficult for investors in the United States

to enforce their legal rights against us based on the civil liability provisions of the U.S.

federal securities laws against us in the

courts of either the U.S.

or the PRC and, even if civil judgments are obtained in U.S.

courts, it may be difficult to enforce such judgments in PRC courts.

Our operations could be adversely affected, directly or indirectly,

by future PRC laws and regulations relating to our business or industry, if we inadvertently conclude that such approvals or permissions,

including business licenses, are not required when they are, or applicable laws, regulations, or interpretations change and we are required

to obtain approvals or permissions in the future.

operations in China are governed by PRC and Hong Kong laws and regulations.

As of the date of this report, as advised our PRC legal

counsel, Beijing Haotai Law Firm, none of our nor our subsidiaries are

currently required to obtain any permission approval or business licenses from the CSRC, the CAC, the trading of our securities on the

OTCQB and the offering of our securities to foreign investors, or any other governmental agency that is required to approve our or our

subsidiaries’ operations.

The business of our Hong Kong subsidiary, Pony HK is not subject to cybersecurity review with the CAC,

given that PRC laws on data protection and cybersecurity do not currently apply to Hong Kong.

Further, for our Shenzhen subsidiary, Universe

Travel, and to the extent that if we become subject to such PRC laws in the future.

As advised by our PRC counsel, we do not believe we

are required to conduct a cybersecurity review because (i) we do not possess a large amount of personal information on more than one million

users in our business operations;

and (ii) data processed in our business does not have a bearing on national security and thus may not

be classified as core or important data by the authorities.

However, our operations could be adversely affected, directly or indirectly,

by future laws and regulations relating to our business or industry, if we inadvertently conclude that such approvals or permissions are

not required when they are, or applicable laws, regulations, or interpretations change and we are required to obtain approvals or permissions

in the future.

We may be subject to penalties and sanctions imposed by the PRC or Hong Kong regulatory agencies, including the CSRC, if

we fail to comply with such rules and regulations, which could adversely affect the ability of the Company’s securities to continue

to trade on the OTCQB, which may cause the value of our securities to significantly decline or become worthless.

courts, it may be difficult to enforce such judgments

in PRC courts.

Our operations could be adversely affected,

directly or indirectly, by future PRC laws and regulations relating to our business or industry, if we inadvertently conclude that such

approvals or permissions, including business licenses, are not required when they are, or applicable laws, regulations, or interpretations

change and we are required to obtain approvals or permissions in the future.

Our operations in China are

governed by PRC and Hong Kong laws and regulations.

As of the date of this report, as advised our PRC legal counsel, Beijing Haotai Law

Firm, none of our nor our subsidiaries are currently required to obtain any permission approval or business licenses from

the CSRC, the CAC, the trading of our securities on the OTCQB and the offering of our securities to foreign investors, or any other governmental

agency that is required to approve our or our subsidiaries’ operations.

The business of our Hong Kong subsidiary, Pony HK is not

subject to cybersecurity review with the CAC, given that PRC laws on data protection and cybersecurity do not currently apply to Hong

Further, for our Shenzhen subsidiary, Universe Travel, and to the extent that if we become subject to such PRC laws in the future.

As advised by our PRC counsel, we do not believe we are required to conduct a cybersecurity review because (i) we do not possess a large

amount of personal information on more than one million users in our business operations;

and (ii) data processed in our business does

not have a bearing on national security and thus may not be classified as core or important data by the authorities.

However, our operations

could be adversely affected, directly or indirectly, by future laws and regulations relating to our business or industry, if we inadvertently

conclude that such approvals or permissions are not required when they are, or applicable laws, regulations, or interpretations change

and we are required to obtain approvals or permissions in the future.

We may be subject to penalties and sanctions imposed by the PRC

or Hong Kong regulatory agencies, including the CSRC, if we fail to comply with such rules and regulations, which could adversely affect

the ability of the Company’s securities to continue to trade on the OTCQB, which may cause the value of our securities to significantly

decline or become worthless.

Given the uncertainties of

interpretation and implementation of laws and regulations and the enforcement practice of government authorities, we may be required to

obtain additional licenses, permits, filings or approvals for the functions and services of our platform in the future.

interpretation and implementation of laws and regulations and the enforcement practice of government authorities, we may be required

to obtain additional licenses, permits, filings or approvals for the functions and services of our platform in the future.

For more detailed

1 unchanged sentence

Business-Regulatory Permissions and Developments”

You may face difficulties in protecting your interests and exercising

your rights as our stockholder since we conduct the bulk of our operations in China.

We conduct the bulk of our operations

in China through our PRC-subsidiary Universe Travel.

Because of this factor, it may be difficult for you to conduct due diligence on the

Company, our executive officers or director and attend stockholders meetings if the meetings are held in China.

As a result, our public

stockholders may have more difficulty in protecting their interests through actions against our management, our director or major stockholders

than would stockholders of a corporation doing business entirely or predominantly within the United States.

We and our shareholders face uncertainties with respect to indirect

transfers of equity interests in PRC resident enterprises or other assets attributed to a Chinese establishment of a non-Chinese company,

or immovable properties located in China owned by non-Chinese companies.

February 3, 2015, the State Administration of Taxation, or SAT, issued the Bulletin on Issues of Enterprise Income Tax on Indirect Transfers

of Assets by Non-PRC Resident Enterprises, or Bulletin 7, which replaced or supplemented previous rules under the Notice on Strengthening

Administration of Enterprise Income Tax for Share Transfers by Non-PRC Resident Enterprises, or Circular 698, issued by the State Administration

of Taxation, on December 10, 2009.

Pursuant to this Bulletin, an “indirect transfer” of assets, including equity interests

in a PRC resident enterprise, by non-PRC resident enterprises may be re-characterized and treated as a direct transfer of PRC taxable

assets, if such arrangement does not have a reasonable commercial purpose and was established for the purpose of avoiding payment of PRC

enterprise income tax.

As a result, gains derived from such an indirect transfer may be subject to PRC enterprise income tax.

to Bulletin 7, “PRC taxable assets” include assets attributed to an establishment in China, immoveable properties located

in China, and equity investments in PRC resident enterprises, in respect of which gains from their transfer by a direct holder, being

a non-PRC resident enterprise, would be subject to PRC enterprise income taxes.

When determining whether there is a “reasonable

commercial purpose” of the transaction arrangement, features to be taken into consideration include:

whether the main value of the

equity interest of the relevant offshore enterprise derives from PRC taxable assets;

whether the assets of the relevant offshore enterprise

mainly consists of direct or indirect investment in China or if its income mainly derives from China;

whether the offshore enterprise

and its subsidiaries directly or indirectly holding PRC taxable assets have a real commercial nature which is evidenced by their actual

function and risk exposure;

the duration of existence of the business model and organizational structure;

the replicability of the transaction

by direct transfer of PRC taxable assets;

You may face difficulties in protecting

your interests and exercising your rights as our stockholder since we conduct the bulk of our operations in China.

We conduct the bulk of our

operations in China through our PRC-subsidiary Universe Travel.

Because of this factor, it may be difficult for you to conduct due diligence

on the Company, our executive officers or director and attend stockholders meetings if the meetings are held in China.

As a result, our

public stockholders may have more difficulty in protecting their interests through actions against our management, our director or major

stockholders than would stockholders of a corporation doing business entirely or predominantly within the United States.

We and our shareholders face uncertainties

with respect to indirect transfers of equity interests in PRC resident enterprises or other assets attributed to a Chinese establishment

of a non-Chinese company, or immovable properties located in China owned by non-Chinese companies.

On February 3, 2015, the

State Administration of Taxation, or SAT, issued the Bulletin on Issues of Enterprise Income Tax on Indirect Transfers of Assets by Non-PRC

Resident Enterprises, or Bulletin 7, which replaced or supplemented previous rules under the Notice on Strengthening Administration of

Enterprise Income Tax for Share Transfers by Non-PRC Resident Enterprises, or Circular 698, issued by the State Administration of Taxation,

on December 10, 2009.

Pursuant to this Bulletin, an “indirect transfer” of assets, including equity interests in a PRC resident

enterprise, by non-PRC resident enterprises may be re-characterized and treated as a direct transfer of PRC taxable assets, if such arrangement

does not have a reasonable commercial purpose and was established for the purpose of avoiding payment of PRC enterprise income tax.

a result, gains derived from such an indirect transfer may be subject to PRC enterprise income tax.

According to Bulletin 7, “PRC

taxable assets” include assets attributed to an establishment in China, immoveable properties located in China, and equity investments

in PRC resident enterprises, in respect of which gains from their transfer by a direct holder, being a non-PRC resident enterprise, would

be subject to PRC enterprise income taxes.

When determining whether there is a “reasonable commercial purpose” of the transaction

arrangement, features to be taken into consideration include:

whether the main value of the equity interest of the relevant offshore

enterprise derives from PRC taxable assets;

whether the assets of the relevant offshore enterprise mainly consists of direct or indirect

investment in China or if its income mainly derives from China;

whether the offshore enterprise and its subsidiaries directly or indirectly

holding PRC taxable assets have a real commercial nature which is evidenced by their actual function and risk exposure;

of existence of the business model and organizational structure;

the replicability of the transaction by direct transfer of PRC taxable

and the tax situation of such indirect transfer and applicable tax treaties or similar arrangements.

In respect of an indirect offshore transfer of assets of a PRC establishment, the resulting gain is to be included with the enterprise

income tax filing of the PRC establishment or place of business being transferred,

and would consequently be subject to PRC enterprise income tax at a rate of 25%.

Where the underlying transfer relates to the immoveable

properties located in China or to equity investments in a PRC resident enterprise, which is not related to a PRC establishment or place

of business of a non-resident enterprise, a PRC enterprise income tax of 10% would apply, subject to available preferential tax treatment

under applicable tax treaties or similar arrangements, and the party who is obligated to make the transf er payments has the withholding

Where the payer fails to withhold any or withholds insufficient tax, the transferor shall declare and pay such tax to the

tax authority by itself within the statutory time limit.

Late payment of applicable tax will subject the transferor to default interest.

Bulletin 7 does not apply to transactions of sale of shares by investors through a public stock exchange where such shares were acquired

from a transaction through a public stock exchange.

October 2017, SAT issued an Announcement on Issues Relating to Withholding at Source of Income Tax of Nonresident Enterprises, or SAT

Effective from December 2017, SAT Circular 37, among others, repealed the Circular 698 and amended certain provisions in

According to SAT Circular 37, where the non-resident enterprise fails to declare the tax payable pursuant to Article 39 of

the Enterprise Income Tax, the tax authority may order it to pay the tax due within required time limits, and the non-resident enterprise

shall declare and pay the tax paya ble within such time limits specified by the tax authority.

However, if the non-resident enterprise

voluntarily declares and pays the tax payable before the tax authority orders it to do so within required time limits, it shall be deemed

that such enterprise has paid the tax in time.

face uncertainties as to the reporting and other implications of certain past and future transactions where PRC taxable assets are involved,

such as offshore restructuring, sale of the shares in our offshore subsidiaries and investments.

Our company may be subject to filing

obligations or taxed if our company is transferor in such transactions, and may be subject to withholding obligations if our company is

transferee in such transactions, under Bulletin 7 and SAT Circular 37.

For transfer of shares in our company by investors who are non-PRC

resident enterprises, our PRC subsidiary may be requested to assist in the filing under the SAT circulars.

As a result, we may be required

to expend valuable resources to comply with the SAT circulars or to request the relevant transferors from whom we purchase taxable assets

to comply with these circulars, or t o establish that our company should not be taxed under these circulars, which may have a material

adverse effect on our financial condition and results of operations.

The future development of national security laws and regulations

in Hong Kong could materially impact our business by possibly triggering sanctions and other measures which can cause economic harm to

our business.

June 30, 2020, the National People’s Congress of China passed a national security law (the “National Security Law”),

which criminalizes certain offenses, including secession, subversion of the Chinese government, terrorism and collusion with foreign entities.

On March 19, 2024, the Legislative Council of Hong Kong enacted the Safeguarding National Security Ordinance (the “SNSO”)

which became in force on March 23, 2024.

The SNSO is the second national security law applicable to Hong Kong that criminalizes treason,

espionage, sedition and external interference in Hong Kong’s internal affairs.

Both the National Security Law and the SNSO also

applies to non-permanent residents.

Although the extra-territorial reach of the National Security Law and the SNSO remains unclear, there

is a risk that its application to conduct outside Hong Kong by non-permanent residents of Hong Kong could limit the activities of or negatively

On July 14, 2020, in response to the enactment of the National Security Law, the United States Congress passed the Hong Kong

Autonomy Act which, among other things, sanction on officials and entities in Hong Kong as well as in China that are deemed to help violate

Hong Kong’s autonomy, and punishes financial institutions that do business with them.

The United States and other countries may

further take action against China, its leaders and leaders of Hong Kong, which may include the imposition of wider sanctions.

of tensions resulting from the National Security Law and the SNSO, including conflict between China and other countries, protests and

other government measures, as well as other economic, social or political unrest in the future, could negatively impact the security and

stability of the region and have a material adverse effect on our business.

The aforementioned risks, including an expansionary application

of the National Security Law or the SNSO in unpredictable circumstances by either the Chinese or Hong Kong authorities, and any downturn

in Hong Kong’s economy could negatively impact the industries in which we participate, negatively impact our business operations

and have a material adverse effect on our results of operations, financial condition and cash flow.

Potential political and economic instability in Hong Kong may

adversely impact our results of operations.

We may also face the risk that changes in the policies of the PRC government could have a

significant impact upon the business we conduct in Hong Kong and the profitability of such business.

Our operational activities are conducted in Hong Kong and through our

wholly owned subsidiary Universe Travel in Shenzhen in Guangdong Province.

Accordingly, political and economic conditions in Hong Kong

and the surrounding region, including Guangdong Province, may directly affect our business.

From 2019 until 2020, a number of political

protests and conflicts have occurred in Hong Kong in connection with proposed legislation that would allow local authorities to detain

and extradite people who are wanted in territories that Hong Kong does not have extradition agreements with, including mainland China

The economy of Hong Kong had been negatively impacted, including our retail market, property market, stock market, and tourism,

from such protests.

Under the Basic Law, Hong Kong is exclusively in

charge of its internal affairs and external relations, while the government of the PRC is responsible for its foreign affairs and defense.

As a separate customs territory, Hong Kong maintains and develops relations with foreign states and regions.

We cannot assure you that

the Hong Kong protests will not affect Hong Kong’s status as a Special Administrative Region of the People’s Republic of China

and thereby affecting its current relations with foreign states and regions.

It is unclear whether there will be other political

or social unrest in the near future or that there will not be other events that could lead to the disruption of the economic, political

and social conditions in Hong Kong.

If such events persist for a prolonged period of time or that the economic, political and social conditions

in Hong Kong are to be disrupted, our overall business and results of operations may be adversely affected.

addition, economic, political and legal developments and social conditions in the PRC may significantly affect our business, financial

condition, results of operations and prospects.

The PRC economy is in transition from a planned economy to a market-oriented economy subject

to plans adopted by the government that set national economic development goals.

Policies of the PRC government can have significant effects

on economic conditions in the PRC and Hong Kong.

While we believe that the PRC will continue to strengthen its economic and trading relationships

with foreign countries and that business development in the PRC will continue to follow market forces, we cannot assure you that this

will be the case.

Our business operations and prospects, financial condition, and results of operations may be adversely affected by changes

in policies by the PRC government, including:

In respect of an indirect

offshore transfer of assets of a PRC establishment, the resulting gain is to be included with the enterprise income tax filing of the

PRC establishment or place of business being transferred, and would consequently be subject to PRC enterprise income tax at a rate of

Where the underlying transfer relates to the immoveable properties located in China or to equity investments in a PRC resident enterprise,

which is not related to a PRC establishment or place of business of a non-resident enterprise, a PRC enterprise income tax of 10% would

apply, subject to available preferential tax treatment under applicable tax treaties or similar arrangements, and the party who is obligated

to make the transfer payments has the withholding obligation.

Where the payer fails to withhold any or withholds insufficient tax, the

transferor shall declare and pay such tax to the tax authority by itself within the statutory time limit.

Late payment of applicable

tax will subject the transferor to default interest.

Bulletin 7 does not apply to transactions of sale of shares by investors through

a public stock exchange where such shares were acquired from a transaction through a public stock exchange.

In October 2017, SAT issued

an Announcement on Issues Relating to Withholding at Source of Income Tax of Nonresident Enterprises, or SAT Circular 37.

Effective from

December 2017, SAT Circular 37, among others, repealed the Circular 698 and amended certain provisions in Bulletin 7.

According to SAT

Circular 37, where the non-resident enterprise fails to declare the tax payable pursuant to Article 39 of the Enterprise Income Tax,

the tax authority may order it to pay the tax due within required time limits, and the non-resident enterprise shall declare and pay

the tax payable within such time limits specified by the tax authority.

However, if the non-resident enterprise voluntarily declares

and pays the tax payable before the tax authority orders it to do so within required time limits, it shall be deemed that such enterprise

has paid the tax in time.

We face uncertainties as

to the reporting and other implications of certain past and future transactions where PRC taxable assets are involved, such as offshore

restructuring, sale of the shares in our offshore subsidiaries and investments.

Our company may be subject to filing obligations or taxed

if our company is transferor in such transactions, and may be subject to withholding obligations if our company is transferee in such

transactions, under Bulletin 7 and SAT Circular 37.

For transfer of shares in our company by investors who are non-PRC resident enterprises,

our PRC subsidiary may be requested to assist in the filing under the SAT circulars.

As a result, we may be required to expend valuable

resources to comply with the SAT circulars or to request the relevant transferors from whom we purchase taxable assets to comply with

these circulars, or to establish that our company should not be taxed under these circulars, which may have a material adverse effect

on our financial condition and results of operations.

The Hong Kong

legal system embodies uncertainties which could limit the legal protections available to our Hong Kong subsidiary.

Kong is a Special Administrative Region of the PRC.

Following British colonial rule from 1842 to 1997, China assumed sovereignty under

the “one country, two systems” principle.

The Hong Kong Special Administrative Region’s constitutional document, the

Basic Law, ensures that the current political situation will remain in effect for 50 years.

Hong Kong has enjoyed the freedom to function

with a high degree of autonomy for its affairs, including currencies, immigration and customs operations, and its independent judiciary

system and parliamentary system.

On July 14, 2020, the United States signed an executive order to end the special status enjoyed by Hong

Kong post-1997.

As the autonomy currently enjoyed may be compromised, it could potentially impact Hong Kong’s common law legal

system and may, in turn, bring about uncertainty in, for example, the enforcement of our contractual rights.

This could, in turn, materially

and adversely affect our business and operations.

Additionally, intellectual property rights and confidentiality protections in Hong

Kong may not be as effective as in the United States or other countries.

Accordingly, we cannot predict the effect of future developments

in the Hong Kong legal system, including the promulgation of new laws, changes to existing laws or the interpretation or enforcement

thereof, or the pre-emption of local regulations by national laws.

These uncertainties could limit the legal protections available to

us, including our ability to enforce our agreements with our clients.

The enactment of the Law of the PRC on

Safeguarding National Security in the Hong Kong Special Administrative Region (the “Hong Kong National Security Law”)

and the Safeguarding National Security Ordinance could impact our Hong Kong subsidiary, which represents substantially all of our

We may also face the risk that changes in the policies of the PRC government could have a significant impact upon the business

we conduct in Hong Kong and the profitability of such business.

On June 30, 2020, the

Standing Committee of the PRC National People’s Congress adopted the Hong Kong National Security Law.

This law defines the

duties and government bodies of the Hong Kong National Security Law for safeguarding national security and four categories of offenses — secession,

subversion, terrorist activities, and collusion with a foreign country or external elements to endanger national security — and

their corresponding penalties.

On July 14, 2020, the former U.S.

President Donald Trump signed the Hong Kong Autonomy

Act, or HKAA, into law, authorizing the U.S.

administration to impose blocking sanctions against individuals and entities who are

determined to have materially contributed to the erosion of Hong Kong’s autonomy.

On August 7, 2020, the U.S.

imposed HKAA-authorized sanctions on eleven individuals, including HKSAR chief executive Carrie Lam.

On October 14, 2020, the U.S.

Department submitted to relevant committees of Congress the report required under the HKAA, identifying persons materially contributing

to “the failure of the Government of China to meet its obligations under the Joint Declaration or the Basic Law.” The HKAA

further authorizes secondary sanctions, including the imposition of blocking sanctions, against foreign financial institutions that knowingly

conduct a significant transaction with foreign persons sanctioned under this authority.

The imposition of sanctions may directly affect

the foreign financial institutions as well as any third parties or customers dealing with any foreign financial institution that is targeted.

On March 19, 2024, the Legislative Council of Hong Kong passed the Safeguarding National Security bill.

The Safeguarding National

Security Ordinance (effective on March 23, 2024) was enacted according to the Article 23 of the Basic Law of the Hong Kong Special

Administrative Region which stipulates that Hong Kong shall enact laws on its own to prohibit any act of treason, secession, sedition,

subversion against the central people’s government, or theft of state secrets.

The Safeguarding National Security Ordinance mainly

covers five types of offences:

treason, insurrection, offences in connection with state secrets and espionage, sabotage endangering national

security and related activities, and external interference and organizations engaging in activities endangering national security.

is difficult to predict the full impact of the Hong Kong National Security Law, HKAA and the Safeguarding National Security Ordinance

on Hong Kong and companies located in Hong Kong, which represents substantially all of our business.

If our Hong Kong subsidiary

is determined to be in violation of the Hong Kong National Security Law or the HKAA or the Safeguarding National Security Ordinance,

our business operations, financial position, and results of operations could be materially and adversely affected.

In addition, economic, political

and legal developments and social conditions in the PRC may significantly affect our business, financial condition, results of operations

and prospects.

The PRC economy is in transition from a planned economy to a market-oriented economy subject to plans adopted by the government

that set national economic development goals.

Policies of the PRC government can have significant effects on economic conditions in the

PRC and Hong Kong.

While we believe that the PRC will continue to strengthen its economic and trading relationships with foreign countries

and that business development in the PRC will continue to follow market forces, we cannot assure you that this will be the case.

business operations and prospects, financial condition, and results of operations may be adversely affected by changes in policies by

the PRC government, including:

changes in laws, regulations or their interpretation;

confiscatory taxation;

restrictions on currency conversion, imports or sources of supplies, or ability to continue as a for-profit enterprise;

restrictions on currency conversion, imports or sources of supplies,

or ability to continue as a for-profit enterprise;

expropriation or nationalization of private enterprises;

the allocation of resources.

Our Hong Kong and Shenzhen subsidiaries may be subject to restrictions

on paying dividends or making other payments to us, which may restrict its ability to satisfy liquidity requirements, conduct business

and pay dividends to holders of our common stock.

Dividends payable to our foreign investors and gains on the sale of our shares of common

stock by our foreign investors may become subject to tax by the PRC.

Group Inc is a holding company incorporated in Delaware with its operating subsidiaries located in Hong Kong and Shenzhen.

cash is maintained in Chinese Yuan.

We conduct no other business and, as a result, we depend entirely upon our Hong Kong and Shenzhen

operating subsidiaries’ earnings and cash flow.

If we decide in the future to pay dividends, as a holding company, our ability to

pay dividends and meet other obligations depends upon the receipt of dividends or other payments from our operating subsidiary.

are currently no restrictions of transferring funds between our Delaware holding company and our operating subsidiaries in Hong Kong and

Shenzhen or limitations on the ability of our Hong Kong and Shenzhen subsidiary to issue dividends or other distributions to its overseas

shareholders.

However, we cannot assure you that the oversight of the PRC government will not be extended to companies operating

in Hong Kong and Shenzhen like our Hong Kong and Shenzhen subsidiaries.

There is a possibility that the PRC government could prevent our

cash maintained in Hong Kong or Shenzhen from leaving or the PRC could restrict the deployment of the cash into our business or for the

payment of dividends.

However, we do not expect that a restriction into the deployment

of cash into our business to affect the use of our assets in our ordinary course of business.

Nevertheless, any such controls or restrictions

in the future could adversely affect our ability to finance our cash requirements, service debt or make dividend or other distributions

to our stockholders and could result in a material adverse change to our business operations, our prospects, financial condition, and

results of operations, and could cause our common stock to significantly decline in value or become worthless.

Holding Foreign Companies Accountable Act, or the HFCAA, and

the related regulations are evolving quickly.

Further implementations and interpretations of our amendments to the HFCAA or the related

regulations, or a PCAOB’s determination of its lack of sufficient access to inspect our auditor, might pose regulatory risks to

and impose restrictions on us because of our operations in mainland China that PCAOB may not be able to inspect or investigate completely

such audit documentation and, as such, you may be deprived of the benefits of such inspection and our ordinary share could be delisted

from the stock exchange pursuant to the HFCAA

The Holding Foreign Companies Accountable Act,

or the HFCA Act, was enacted on December 18, 2020.

The HFCA Act states if the SEC determines that a company has filed audit reports issued

by a registered public accounting firm that has not been subject to inspection by the PCAOB for three consecutive years beginning in 2021,

the SEC shall prohibit such common stock from being traded on a national securities exchange or in the over the counter trading market

On March 24, 2021, the SEC adopted interim final

rules relating to the implementation of certain disclosure and documentation requirements of the HFCA Act.

A company will be required

to comply with these rules if the SEC identifies it as having a “non-inspection” year under a process to be subsequently established

The SEC is assessing how to implement other requirements of the HFCA Act, including the listing and trading prohibition requirements

described above.

Our Hong Kong and Shenzhen subsidiaries

may be subject to restrictions on paying dividends or making other payments to us, which may restrict its ability to satisfy liquidity

requirements, conduct business and pay dividends to holders of our common stock.

Dividends payable to our foreign investors and gains

on the sale of our shares of common stock by our foreign investors may become subject to tax by the PRC.

Pony Group Inc is a holding

company incorporated in Delaware with its operating subsidiaries located in Hong Kong and Shenzhen.

Most of our cash is maintained in

Chinese Yuan.

We conduct no other business and, as a result, we depend entirely upon our Hong Kong and Shenzhen operating subsidiaries’

earnings and cash flow.

If we decide in the future to pay dividends, as a holding company, our ability to pay dividends and meet other

obligations depends upon the receipt of dividends or other payments from our operating subsidiary.

There are currently no restrictions

of transferring funds between our Delaware holding company and our operating subsidiaries in Hong Kong and Shenzhen or limitations on

the ability of our Hong Kong and Shenzhen subsidiary to issue dividends or other distributions to its overseas shareholders.

we cannot assure you that the oversight of the PRC government will not be extended to companies operating in Hong Kong and Shenzhen like

our Hong Kong and Shenzhen subsidiaries.

There is a possibility that the PRC government could prevent our cash maintained in Hong Kong

or Shenzhen from leaving or the PRC could restrict the deployment of the cash into our business or for the payment of dividends.

we do not expect that a restriction into the deployment of cash into our business to affect the use of our assets in our ordinary course

Nevertheless, any such controls or restrictions in the future could adversely affect our ability to finance our cash requirements,

service debt or make dividend or other distributions to our stockholders and could result in a material adverse change to our business

operations, our prospects, financial condition, and results of operations, and could cause our common stock to significantly decline

in value or become worthless.

Holding Foreign Companies Accountable Act,

or the HFCAA, and the related regulations are evolving quickly.

Further implementations and interpretations of our amendments to the

HFCAA or the related regulations, or a PCAOB’s determination of its lack of sufficient access to inspect our auditor, might pose

regulatory risks to and impose restrictions on us because of our operations in mainland China that PCAOB may not be able to inspect or

investigate completely such audit documentation and, as such, you may be deprived of the benefits of such inspection and our ordinary

share could be delisted from the stock exchange pursuant to the HFCAA

The Holding Foreign Companies

Accountable Act, or the HFCA Act, was enacted on December 18, 2020.

The HFCA Act states if the SEC determines that a company has filed

audit reports issued by a registered public accounting firm that has not been subject to inspection by the PCAOB for three consecutive

years beginning in 2021, the SEC shall prohibit such common stock from being traded on a national securities exchange or in the over

the counter trading market in the U.S.

On March 24, 2021, the SEC

adopted interim final rules relating to the implementation of certain disclosure and documentation requirements of the HFCA Act.

will be required to comply with these rules if the SEC identifies it as having a “non-inspection” year under a process to

be subsequently established by the SEC.

The SEC is assessing how to implement other requirements of the HFCA Act, including the listing

and trading prohibition requirements described above.

On June 22, 2021, the U.S.

Senate passed the Accelerating

Holding Foreign Companies Accountable Act, or AHFCAA, which proposes to reduce the period of time for foreign companies to comply with

PCAOB audits from three to two consecutive years, thus reducing the time period before the securities of such foreign companies may be

prohibited from trading or delisted.

Senate passed the Accelerating Holding Foreign Companies Accountable Act, or AHFCAA, which proposes to reduce the period of time for

foreign companies to comply with PCAOB audits from three to two consecutive years, thus reducing the time period before the securities

of such foreign companies may be prohibited from trading or delisted.

On December 29, 2022, the AHFCAA was signed into law.

September 22, 2021, the PCAOB adopted a final rule implementing the HFCA Act, which provides a framework for the PCAOB to use when determining,

as contemplated under the HFCA Act, whether the PCAOB is unable to inspect or investigate completely registered public accounting firms

located in a foreign jurisdiction because of a position taken by one or more authorities in that jurisdiction.

On December 2, 2021, the

SEC issued amendments to finalize rules implementing the submission and disclosure requirements in the HFCA Act.

On September 22, 2021, the

PCAOB adopted a final rule implementing the HFCA Act, which provides a framework for the PCAOB to use when determining, as contemplated

under the HFCA Act, whether the PCAOB is unable to inspect or investigate completely registered public accounting firms located in a

foreign jurisdiction because of a position taken by one or more authorities in that jurisdiction.

On December 2, 2021, the SEC issued

amendments to finalize rules implementing the submission and disclosure requirements in the HFCA Act.

The rules apply to registrants

4 unchanged sentences

The SEC will begin to identify and list Commission-Identified

Issuers on its website shortly after registra nts begin filing their annual reports for 2021.

December 16, 2021, PCAOB announced the PCAOB Holding Foreign Companies Accountable Act determinations (the “2021 PCAOB

Determinations”) relating to the PCAOB’s inability to inspect or investigate completely registered public accounting

firms headquartered in mainland China of the PRC or Hong Kong, a Special Administrative Region and dependency of the PRC, because of

a position taken by one or more authorities in the PRC or Hong Kong.

Issuers on its website shortly after registrants begin filing their annual reports for 2021.

On December 16, 2021, PCAOB

announced the PCAOB Holding Foreign Companies Accountable Act determinations (the “2021 PCAOB Determinations”) relating to

the PCAOB’s inability to inspect or investigate completely registered public accounting firms headquartered in mainland China of

the PRC or Hong Kong, a Special Administrative Region and dependency of the PRC, because of a position taken by one or more authorities

in the PRC or Hong Kong.

Our auditor, YCM CPA INC.

is not headquartered in China or Hong

Kong and was not identified in this report as a firm subject to the PCAOB’s determination.

The lack of access to the PCAOB inspection in China

prevents the PCAOB from fully evaluating audits and quality control procedures of the auditors based in China.

As a result, the investors

may be deprived of the benefits of such PCAOB inspections.

The inability of the PCAOB to conduct inspections of auditors in China makes

it more difficult to evaluate the effectiveness of these accounting firms’ audit procedures or quality control procedures as compared

to auditors outside of China that are subject to the PCAOB inspections, which could cause existing and potential investors in our stock

to lose confidence in our audit procedures and reported financial information and the quality of our financial statements.

auditor, the independent registered public accounting firm that issues the audit report included elsewhere in this prospectus, as an auditor

of companies that are traded publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States

pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards.

Our auditor’s

registration with the PCAOB took effect in September 2020 and it is currently subject to PCAOB inspections.

The PCAOB currently has access

to inspect the working papers of our auditor.

However, the recent developments would add uncertainties to our offering and we cannot assure

you whether regulatory authorities would apply additional and more stringent criteria to us after considering the effectiveness of our

auditor’s audit procedures and quality control procedures, adequacy of personnel and training, or sufficiency of resources, geographic

reach or experience as it relates to the audit of our financial statements.

On August 26, 2022, the PCAOB announced and signed

a Statement of Protocol (the “Protocol”) with the China Securities Regulatory Commission and the Ministry of Finance of the

People’s Republic of China.

is not headquartered in China or Hong Kong and was not identified in this report as

a firm subject to the PCAOB’s determination.

The lack of access to the

PCAOB inspection in China prevents the PCAOB from fully evaluating audits and quality control procedures of the auditors based in China.

As a result, the investors may be deprived of the benefits of such PCAOB inspections.

The inability of the PCAOB to conduct inspections

of auditors in China makes it more difficult to evaluate the effectiveness of these accounting firms’ audit procedures or quality

control procedures as compared to auditors outside of China that are subject to the PCAOB inspections, which could cause existing and

potential investors in our stock to lose confidence in our audit procedures and reported financial information and the quality of our

financial statements.

Our auditor, the independent

registered public accounting firm that issues the audit report included elsewhere in this prospectus, as an auditor of companies that

are traded publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States pursuant to which

the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards.

Our auditor’s registration

with the PCAOB took effect in September 2020 and it is currently subject to PCAOB inspections.

The PCAOB currently has access to inspect

the working papers of our auditor.

However, the recent developments would add uncertainties to our offering and we cannot assure you

whether regulatory authorities would apply additional and more stringent criteria to us after considering the effectiveness of our auditor’s

audit procedures and quality control procedures, adequacy of personnel and training, or sufficiency of resources, geographic reach or

experience as it relates to the audit of our financial statements.

On August 26, 2022, the PCAOB

announced and signed a Statement of Protocol (the “Protocol”) with the China Securities Regulatory Commission and the Ministry

of Finance of the People’s Republic of China.

The Protocol provides the PCAOB with:

(1) sole discretion to select the firms, audit engagements and

potential violations it inspects and investigates, without any involvement of Chinese authorities;

(2) procedures for PCAOB inspectors

and investigators to view complete audit work papers with all information included and for the PCAOB to retain information as needed;

(1) sole discretion to select the firms, audit

engagements and potential violations it inspects and investigates, without any involvement of Chinese authorities;

(2) procedures for

PCAOB inspectors and investigators to view complete audit work papers with all information included and for the PCAOB to retain information

(3) direct access to interview and take testimony from all personnel associated with the audits the PCAOB inspects or investigates.

The PCAOB reassessed the 2021 PCAOB Determinations

that the positions taken by PRC authorities prevented the PCAOB from inspecting and investigating in mainland China and Hong Kong completely.

The PCAOB sent its inspectors to conduct on-site inspections and investigations of firms headquartered in mainland China and Hong Kong

from September to November 2022.

December 15, 2022, the PCAOB announced its determination (the “2022 Determination”) that the PCAOB was able to secure complete

access to inspect and investigate accounting firms headquartered in mainland China and Hong Kong, and the PCAOB Board voted to vacate

previous determinations to the contrary.

Should the PCAOB again encounter impediments to inspections and investigations in mainland China

or Hong Kong as a result of positions taken by any authority in either jurisdiction, including by the CSRC or the Ministry of Finance,

the PCAOB will make determinations under the HFCAA as and when appropriate.

We cannot assure you whether OTC or regulatory authorities

would apply additional and more string ent criteria to us after considering the effectiveness of our auditor’s audit procedures

and quality control procedures, adequacy of personnel and training, or sufficiency of resources, geographic reach, or experience as it

relates to the audit of our financial statements.

There is a risk that the PCAOB is unable to inspect or investigate completely the Company’s

auditor because of a position taken by an authority in a foreign jurisdiction or any other reasons, and that the PCAOB may re-evaluate

its determinations as a result of any obstruction with the implementation of

the Protocol.

Such lack of inspection or re-evaluation could cause trading in the Company’s securities to be prohibited under the

HFCAA ultimately result in a determination by a securities exchange to delist the Company’s securities.

In addition, under the HFCAA

as amended by the AHFCAA, our securities may be prohibited from trading on the OTC or other U.S.

stock exchanges if our auditor is not

inspected by the PCAOB for two consecutive years, and this ultimately could result in our ordinary shares being delisted by and exchange.

recent developments would add uncertainties to our offering and we cannot assure you whether the SEC, the PCAOB, OTC, or other regulatory

authorities would apply additional and more stringent criteria to us after considering the effectiveness of our auditor’s audit

procedures and quality control procedures, adequacy of personnel and training, or sufficiency of resources, geographic reach or experience

as it relates to the audit of our financial statements.

It remains unclear what further actions the SEC, the PCAOB or OTC will take to

address these issues and what i mpact those actions will have on U.S.

companies that have significant operations in the PRC and

have securities listed on a U.S.

The PCAOB reassessed the

2021 PCAOB Determinations that the positions taken by PRC authorities prevented the PCAOB from inspecting and investigating in mainland

China and Hong Kong completely.

The PCAOB sent its inspectors to conduct on-site inspections and investigations of firms headquartered

in mainland China and Hong Kong from September to November 2022.

On December 15, 2022, the

PCAOB announced its determination (the “2022 Determination”) that the PCAOB was able to secure complete access to inspect

and investigate accounting firms headquartered in mainland China and Hong Kong, and the PCAOB Board voted to vacate previous determinations

to the contrary.

Should the PCAOB again encounter impediments to inspections and investigations in mainland China or Hong Kong as a result

of positions taken by any authority in either jurisdiction, including by the CSRC or the Ministry of Finance, the PCAOB will make determinations

under the HFCAA as and when appropriate.

We cannot assure you whether OTC or regulatory authorities would apply additional and more stringent

criteria to us after considering the effectiveness of our auditor’s audit procedures and quality control procedures, adequacy of

personnel and training, or sufficiency of resources, geographic reach, or experience as it relates to the audit of our financial statements.

There is a risk that the PCAOB is unable to inspect or investigate completely the Company’s auditor because of a position taken

by an authority in a foreign jurisdiction or any other reasons, and that the PCAOB may re-evaluate its determinations as a result of

any obstruction with the implementation of the Protocol.

Such lack of inspection or re-evaluation could cause trading in the Company’s

securities to be prohibited under the HFCAA ultimately result in a determination by a securities exchange to delist the Company’s

In addition, under the HFCAA as amended by the AHFCAA, our securities may be prohibited from trading on the OTC or other

stock exchanges if our auditor is not inspected by the PCAOB for two consecutive years, and this ultimately could result in our

ordinary shares being delisted by and exchange.

Such recent developments

would add uncertainties to our offering and we cannot assure you whether the SEC, the PCAOB, OTC, or other regulatory authorities would

apply additional and more stringent criteria to us after considering the effectiveness of our auditor’s audit procedures and quality

control procedures, adequacy of personnel and training, or sufficiency of resources, geographic reach or experience as it relates to

the audit of our financial statements.

It remains unclear what further actions the SEC, the PCAOB or OTC will take to address these issues

and what impact those actions will have on U.S.

companies that have significant operations in the PRC and have securities listed on a

stock exchange (including a national securities exchange or over-the-counter stock market).

any additional actions, proceedings, or new rules resulting from these efforts to increase U.S.

regulatory access to audit information

could create some uncertainty for investors, the market price of our common stock could be adversely affected, and we could be delisted

if we and our auditor are unable to meet the PCAOB inspection requirement or being required to engage a new audit firm, which would require

significant expense and management time.

If trading in our common stock is prohibited under the HFCAA in the future because the PCAOB

determines that it cannot inspect or fully investigate our auditor at such future

time, OTC may determine to delist our common stock.

If shares of our common stock are unable to be listed on another securities exchange

by then, such a delisting would substantially impair your ability to sell or purchase our ordinary shares when you wish to do so, and

the risk and uncertainty associated with a potential delisting would have a negative impact on the price of our common stock.

In addition, any additional actions,

proceedings, or new rules resulting from these efforts to increase U.S.

regulatory access to audit information could create some uncertainty

for investors, the market price of our common stock could be adversely affected, and we could be delisted if we and our auditor are unable

to meet the PCAOB inspection requirement or being required to engage a new audit firm, which would require significant expense and management

If trading in our common stock is prohibited under the HFCAA in the future because the PCAOB determines that it cannot inspect

or fully investigate our auditor at such future time, OTC may determine to delist our common stock.

If shares of our common stock are

unable to be listed on another securities exchange by then, such a delisting would substantially impair your ability to sell or purchase

our ordinary shares when you wish to do so, and the risk and uncertainty associated with a potential delisting would have a negative

impact on the price of our common stock.

Risks Related to Our Common Stock

Our majority stockholders will control our company for the foreseeable

future, including the outcome of matters requiring shareholder approval.

Fan, our Chief Executive Officer, President and director have over 78.3% beneficial ownership of our Company, through Pony Group Ltd,

KERUIDA Investment Limited, Synionm Investments Limited and Wisdom Travel Service Investments Limited, which is beneficially owned by

Our majority stockholders will control

our company for the foreseeable future, including the outcome of matters requiring shareholder approval.

Fan, our Chief Executive

Officer, President and director have over 72% beneficial ownership of our Company, through Pony Group Ltd, KERUIDA Investment Limited,

Synionm Investments Limited and Wisdom Travel Service Investments Limited, which is beneficially owned by Ms.

As a result, Ms.

Fan will have the ability to control the election of our directors and the outcome of corporate actions requiring

shareholder approval, such as:

(i) a merger or a sale of our Company, (ii) a sale of all or substantially all of our assets, and (iii)

amendments to our articles of incorporation and bylaws.

This concentration of voting power and control could have a significant effect

in delaying, deferring or preventing an action that might otherwise be beneficial to our other shareholders and be disadvantageous to

our shareholders with interests different from those individuals.

Certain of these individuals also have significant control over our

business, policies and affairs as officers or directors of our company.

Th erefore, you should not invest in reliance on your ability

to have any control over our company.

No public market for our common stock currently exists, and an

active trading market may not develop or be sustained following this offering.

As we are in our early stages of development, an investment in our

Company will likely require a long-term commitment, with no certainty of return.

Our common stock is quoted on the OTC Market.

there is no guarantee that there will be any trading in our common stock.

In addition, there is a risk that we will not be able to have

our stock listed or quoted on a more established market, and even if we are able to do so (of which no assurance can be given), we cannot

predict whether an active market for our common stock will ever develop in the future.

will have the ability to control the election of our directors and the outcome of corporate actions requiring shareholder approval, such

(i) a merger or a sale of our Company, (ii) a sale of all or substantially all of our assets, and (iii) amendments to our articles

of incorporation and bylaws.

This concentration of voting power and control could have a significant effect in delaying, deferring or

preventing an action that might otherwise be beneficial to our other shareholders and be disadvantageous to our shareholders with interests

different from those individuals.

Certain of these individuals also have significant control over our business, policies and affairs

as officers or directors of our company.

Therefore, you should not invest in reliance on your ability to have any control over our company.

No public market for our common stock currently

exists, and an active trading market may not develop or be sustained following this offering.

As we are in our early stages

of development, an investment in our Company will likely require a long-term commitment, with no certainty of return.

Our common stock

is quoted on the OTC Market.

However, there is no guarantee that there will be any trading in our common stock.

In addition, there is

a risk that we will not be able to have our stock listed or quoted on a more established market, and even if we are able to do so (of

which no assurance can be given), we cannot predict whether an active market for our common stock will ever develop in the future.

In the absence of an active trading market:

investors may have difficulty buying and selling or obtaining market quotations;

investors may have difficulty buying and selling or obtaining market

market visibility for shares of our common stock may be limited;

a lack of visibility for shares of our common stock may have a depressive effect on the market price for shares of our common stock.

While we believe our revenues and cash on hand are adequate to

meet our immediate needs, we may require additional funding in order to progress our business in the future.

If we are unable to raise

additional capital, we could be forced to delay, reduce or eliminate portions of our business.

While we believe our cash, cash equivalents

on hand and cash from operations are adequate to meet our liquidity needs and capital expenditure requirements for at least the next 12

months, we may require an additional infusion of funds in the future to grow our business.

In the event we were to experience an economic

recession or a slow growth period, such an event could adversely affect our business, liquidity and future growth.

In addition, should

we experience instability in or a tightening of the capital markets, such an event could adversely affect our ability to obtain additional

capital to grow our business on terms acceptable to us or at all.

a lack of visibility for shares of our common stock may have a depressive

effect on the market price for shares of our common stock.

While we believe our revenues and cash

on hand are adequate to meet our immediate needs, we may require additional funding in order to progress our business in the future.

If we are unable to raise additional capital, we could be forced to delay, reduce or eliminate portions of our business.

While we believe our cash,

cash equivalents on hand and cash from operations are adequate to meet our liquidity needs and capital expenditure requirements for at

least the next 12 months, we may require an additional infusion of funds in the future to grow our business.

In the event we were to

experience an economic recession or a slow growth period, such an event could adversely affect our business, liquidity and future growth.

In addition, should we experience instability in or a tightening of the capital markets, such an event could adversely affect our ability

to obtain additional capital to grow our business on terms acceptable to us or at all.

There is substantial doubt about our ability

to continue as a going concern.

Our audited financial statements for the year ended December 31, 2024

were prepared assuming that we will continue as a going concern.

In addition, as discussed in Note 3 of the financial statements for the

year ended December 31, 2024, the Company has suffered recurring losses from operations.

These conditions raise substantial doubt on our

ability to continue as a going concern.

The report of our independent registered public accounting firm on our financial statements for

the year ended December 31, 2024 included an explanatory paragraph on the doubt of our ability to continue as a going concern in order

to draw prospective investors’ attention to the relevant note in the financial statements for the year ended December 31, 2024.

order to continue as a going concern, the Company will need, among other things, additional capital resources.

Management’s plans

to obtain such resources for the Company include (1) obtaining capital from the sale of its equity securities, (2) sales of the

Company’s services, (3) short-term and long-term borrowings from banks, and (4) short-term borrowings from stockholders or other

related party( ies) when needed.

However, management cannot provide any assurance

that the Company will be successful in accomplishing any of its plans.

The ability of the Company to continue a s a going concern

is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other

sources of financing and attain profitable operations.

If we are unable to raise additional capital in debt or equity financing on terms

favorable to us, then we may be unable to achieve our objectives.

Raising additional capital may cause

dilution to our stockholders, restrict our operations or require us to relinquish rights to our technologies or product candidates.

We may need to raise funding in the future

to further develop our business.

There can be no assurance that we will be able to raise sufficient capital on acceptable terms, or at

If such financing is not available on satisfactory terms, or is not available at all, we may be required to delay, scale back or

eliminate the development of business opportunities and our operations and financial condition may be adversely affected to a significant

If we raise additional capital by issuing

equity securities, the percentage and/or economic ownership of our existing stockholders may be reduced, and accordingly these stockholders

may experience substantial dilution.

We may also issue equity securities that provide for rights, preferences and privileges senior to

those of our common stock.

Debt financing, if obtained, may involve

agreements that include liens on our assets, covenants limiting or restricting our ability to take specific actions, such as incurring

additional debt, increases in our expenses and requirements that our assets be provided as a security for such debt.

Debt financing would

also be required to be repaid regardless of our operating results.

Funding from any source may be unavailable

to us on acceptable terms, or at all.

If we do not have sufficient capital to fund our operations and expenses, our business opportunities

could be substantially diminished.

Our common stock is currently quoted on the OTC Market.

is a relatively unorganized, inter-dealer, over-the-counter markets that provide significantly less liquidity than any tier of the NASDAQ

or the New York Stock Exchange.

No assurances can be given that our common stock will remain quoted on such markets, much less a

senior market like NASDAQ or the New York Stock Exchange.

In this event, there would be a highly illiquid market for our common stock

and you may be unable to dispose of your common stock at desirable prices or at all.

Moreover, there is a risk that our common stock could

be delisted from the OTC Market, in which case it might be listed on OTC Pink, which is even more illiquid than the OTC Market.

The lack of an active market impairs

your ability to sell your shares of our common stock at the time you wish to sell them or at a price that you consider reasonable.

lack of an active market may also reduce the fair market value of your shares of our common stock.

Our audited financial statements

for the year ended December 31, 2025 were prepared assuming that we will continue as a going concern.

In addition, as discussed in Note

3 of the financial statements for the year ended December 31, 2025, the Company has suffered recurring losses from operations.

conditions raise substantial doubt on our ability to continue as a going concern.

The report of our independent registered public accounting

firm on our financial statements for the year ended December 31, 2025 included an explanatory paragraph on the doubt of our ability to

continue as a going concern in order to draw prospective investors’ attention to the relevant note in the financial statements

for the year ended December 31, 2025.

In order to continue as a

going concern, the Company will need, among other things, additional capital resources.

Management’s plans to obtain such resources

for the Company include (1) obtaining capital from the sale of its equity securities, (2) sales of the Company’s services, (3)

short-term and long-term borrowings from banks, and (4) short-term borrowings from stockholders or other related party(ies) when needed.

However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans.

The ability of

the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding

paragraph and eventually to secure other sources of financing and attain profitable operations.

If we are unable to raise additional

capital in debt or equity financing on terms favorable to us, then we may be unable to achieve our objectives.

Raising additional

capital may cause dilution to our stockholders, restrict our operations or require us to relinquish rights to our technologies or product

We may need to raise funding

in the future to further develop our business.

There can be no assurance that we will be able to raise sufficient capital on acceptable

terms, or at all.

If such financing is not available on satisfactory terms, or is not available at all, we may be required to delay,

scale back or eliminate the development of business opportunities and our operations and financial condition may be adversely affected

to a significant extent.

If we raise additional capital

by issuing equity securities, the percentage and/or economic ownership of our existing stockholders may be reduced, and accordingly these

stockholders may experience substantial dilution.

We may also issue equity securities that provide for rights, preferences and privileges

senior to those of our common stock.

Debt financing, if obtained,

may involve agreements that include liens on our assets, covenants limiting or restricting our ability to take specific actions, such

as incurring additional debt, increases in our expenses and requirements that our assets be provided as a security for such debt.

financing would also be required to be repaid regardless of our operating results.

Funding from any source may

be unavailable to us on acceptable terms, or at all.

If we do not have sufficient capital to fund our operations and expenses, our business

opportunities could be substantially diminished.

Our common stock is currently

quoted on the OTC Market.

This market is a relatively unorganized, inter-dealer, over-the-counter markets that provide significantly

less liquidity than any tier of the NASDAQ or the New York Stock Exchange.

No assurances can be given that our common stock will

remain quoted on such markets, much less a senior market like NASDAQ or the New York Stock Exchange.

In this event, there would be a

highly illiquid market for our common stock and you may be unable to dispose of your common stock at desirable prices or at all.

there is a risk that our common stock could be delisted from the OTC Market, in which case it might be listed on OTC Pink, which is even

more illiquid than the OTC Market.

The lack of an active market

impairs your ability to sell your shares of our common stock at the time you wish to sell them or at a price that you consider reasonable.

The lack of an active market may also reduce the fair market value of your shares of our common stock.

An inactive market may also impair

1 unchanged sentence

our operations through acquisitions by using our shares as consideration.

Even if an active trading market develops, the market price for our

common stock may be volatile.

Even if an active market for our common stock develops, of which no

assurance can be given, the market price for our common stock may be volatile and subject to wide fluctuations due to factors such as:

Even if an active trading market develops,

the market price for our common stock may be volatile.

Even if an active market

for our common stock develops, of which no assurance can be given, the market price for our common stock may be volatile and subject

to wide fluctuations due to factors such as:

the perception of U.S.

investors and regulators of U.S.

listed Chinese companies;

listed Chinese

actual or anticipated fluctuations in our quarterly operating results;

1 unchanged sentence

negative publicity, studies or reports;

our capability to match and compete with technology innovations in the industry;

changes in the economic performance or market valuations of other companies in the same industry;

announcements by us or our competitors of acquisitions, strategic partnerships, joint ventures or capital commitments;

our capability to match and compete with technology innovations in

the industry;

changes in the economic performance or market valuations of other companies

in the same industry;

announcements by us or our competitors of acquisitions, strategic partnerships,

joint ventures or capital commitments;

addition or departure of key personnel;

1 unchanged sentence

general economic or political conditions in or influencing China.

addition, the securities market has from time to time experienced significant price and volume fluctuations that are not related to the

operating performance of particular companies.

These market fluctuations may also materially and adversely affect the

market price of our common stock.

Our common stock may be thinly traded and you may be unable to

sell at or near ask prices or at all if you need to sell your shares to raise money or otherwise desire to liquidate your shares.

Our common stock currently trades over-the-counter and are “thinly-traded,”

meaning that the number of persons interested in purchasing our common stock at or near bid prices at any given time may be relatively

small or non-existent.

This situation may be attributable to a number of factors, including the fact that we are relatively unknown

to stock analysts, stock brokers, institutional investors and others in the investment community that generate or influence sales volume,

and that even if we came to the attention of such persons, they tend to be risk-averse and might be reluctant to follow an unproven company

such as ours or purchase or recommend the purchase of our shares until such time as we became more seasoned.

As a consequence, there

may be periods of several days or more when trading activity in our shares is minimal or non-existent, as compared to a seasoned issuer

which has a large and steady volume of trading activity that will generally support continuous sales without an adverse effect on share

Broad or active public trading market for our common stock may not develop or be sustained.

Our common stock is considered a “penny stock,”

and thereby be subject to additional sale and trading regulations that may make it more difficult to sell.

Our common stock, which is currently trading on the OTC Market, is

considered to be a “penny stock” if it does not qualify for one of the exemptions from the definition of “penny stock”

under Section 3a51-1 of the Exchange Act, as amended.

Our common stock is a “penny stock ”since it meets one or

more of the following conditions:

(i) the stock trades at a price less than $5.00 per share;

(ii) it is not traded on a “recognized”

national exchange;

(iii) it is not quoted on the Nasdaq Capital Market or, even if so, has a price of less than $5.00 per share;

is issued by a company that has been in business less than three years with net tangible assets less than $5 million.

The principal

result or effect of being designated a “penny stock” is that securities broker-dealers participating in sales of our common

stock will be subject to the “penny stock” regulations set forth in Rules 15g-2 through 15g-9 promulgated under the Exchange

For example, Rule 15g-2 requires broker-dealers dealing in penny stocks to provide potential investors with a document

disclosing the risks of penny stocks and to obtain a manually signed and dated written receipt of the document at least two business days

before effecting any transaction in a penny stock for the investor’s account.

Moreover, Rule 15g-9 requires broker-dealers

in penny stocks to approve the account of any investor for transactions in such stocks before selling any penny stock to that investor.

procedure requires the broker-dealer to:

(i) obtain from the investor information concerning his or her financial situation, investment

experience and investment objectives;

(ii) reasonably determine, based on that information, that transactions in penny stocks are suitable

for the investor and that the investor has sufficient knowledge and experience as to be reasonably capable of evaluating the risks of

penny stock transactions;

(iii) provide the investor with a written statement setting forth the basis on which the broker-dealer made

the determination in (ii) above;

and (iv) receive a signed and dated copy of such statement from the investor, confirming that it accurately

reflects the investor’s financial situation, investment experience and investment objectives.

Compliance with these requirements

may make it more difficult and time consuming for holders of our common stock to resell their shares to third parties or to otherwise

dispose of them in the market or otherwise.

FINRA sales practice requirements may also limit your ability

to buy and sell shares of our common stock, which could depress the price of shares of our common stock.

FINRA rules require broker-dealers to

have reasonable grounds for believing that an investment is suitable for a customer before recommending that investment to the customer.

In addition, the securities

market has from time to time experienced significant price and volume fluctuations that are not related to the operating performance

of particular companies.

These market fluctuations may also materially and adversely affect the market price of our common

Our common stock may be thinly traded and

you may be unable to sell at or near ask prices or at all if you need to sell your shares to raise money or otherwise desire to liquidate

Our common stock currently

trades over-the-counter and are “thinly-traded,” meaning that the number of persons interested in purchasing our common stock

at or near bid prices at any given time may be relatively small or non-existent.

This situation may be attributable to a number

of factors, including the fact that we are relatively unknown to stock analysts, stock brokers, institutional investors and others in

the investment community that generate or influence sales volume, and that even if we came to the attention of such persons, they tend

to be risk-averse and might be reluctant to follow an unproven company such as ours or purchase or recommend the purchase of our shares

until such time as we became more seasoned.

As a consequence, there may be periods of several days or more when trading activity

in our shares is minimal or non-existent, as compared to a seasoned issuer which has a large and steady volume of trading activity that

will generally support continuous sales without an adverse effect on share price.

Broad or active public trading market for our

common stock may not develop or be sustained.

Our common stock is considered a “penny

stock,” and thereby be subject to additional sale and trading regulations that may make it more difficult to sell.

Our common stock, which is

currently trading on the OTC Market, is considered to be a “penny stock” if it does not qualify for one of the exemptions

from the definition of “penny stock” under Section 3a51-1 of the Exchange Act, as amended.

Our common stock is

a “penny stock ”since it meets one or more of the following conditions:

(i) the stock trades at a price less than $5.00 per

(ii) it is not traded on a “recognized” national exchange;

(iii) it is not quoted on the Nasdaq Capital Market or,

even if so, has a price of less than $5.00 per share;

or (iv) is issued by a company that has been in business less than three years

with net tangible assets less than $5 million.

The principal result or effect of being designated a “penny stock”

is that securities broker-dealers participating in sales of our common stock will be subject to the “penny stock” regulations

set forth in Rules 15g-2 through 15g-9 promulgated under the Exchange Act.

For example, Rule 15g-2 requires broker-dealers

dealing in penny stocks to provide potential investors with a document disclosing the risks of penny stocks and to obtain a manually

signed and dated written receipt of the document at least two business days before effecting any transaction in a penny stock for the

investor’s account.

Moreover, Rule 15g-9 requires broker-dealers in penny stocks to approve the account of any investor

for transactions in such stocks before selling any penny stock to that investor.

This procedure requires the broker-dealer

(i) obtain from the investor information concerning his or her financial situation, investment experience and investment objectives;

(ii) reasonably determine, based on that information, that transactions in penny stocks are suitable for the investor and that the investor

has sufficient knowledge and experience as to be reasonably capable of evaluating the risks of penny stock transactions;

(iii) provide

the investor with a written statement setting forth the basis on which the broker-dealer made the determination in (ii) above;

receive a signed and dated copy of such statement from the investor, confirming that it accurately reflects the investor’s financial

situation, investment experience and investment objectives.

Compliance with these requirements may make it more difficult

and time consuming for holders of our common stock to resell their shares to third parties or to otherwise dispose of them in the market

or otherwise.

FINRA sales practice requirements may also

limit your ability to buy and sell shares of our common stock, which could depress the price of shares of our common stock.

FINRA rules require broker-dealers

to have reasonable grounds for believing that an investment is suitable for a customer before recommending that investment to the customer.

Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts

6 unchanged sentences

stock, and thereby depress price of our common stock.

Potential future sales under Rule 144 may depress the market

price for the common stock.

In general, under SEC Rule 144, a person

who has satisfied a minimum holding period of between six months to one-year, as well as meeting any other applicable requirements of

Rule 144, may thereafter sell such shares publicly.

Therefore, the possible sale of unregistered shares may, in the future, have a depressive

effect on the price of our common stock in the over-the-counter market.

Volatility in our common stock price may subject us to securities

market for our common stock may have, when compared to seasoned issuers, significant price volatility and we expect that our share price

may continue to be more volatile than that of a seasoned issuer for the indefinite future.

In the past, plaintiffs have often initiated

securities class action litigation against a company following periods of volatility in the market price of its securities.

the future, be the target of similar litigation.

Securities litigation could result in substantial costs and liabilities and could

divert management’s attention and resources.

We are not likely to pay cash dividends in the foreseeable future.

We currently intend to retain any future

earnings for use in the operation and expansion of our business.

Accordingly, we do not expect to pay any cash dividends in the foreseeable

future, but will review this policy as circumstances dictate.

Should we determine to pay dividends in the future, our ability to do so

will depend upon the receipt of dividends or other payments from Universe Travel.

Universe Travel may, from time to time, be subject to

restrictions on its ability to make distributions to us, including restrictions on the conversion of RMB into U.S.

dollars or other hard

currency and other regulatory restrictions.

investors may experience difficulties in attempting to effect

a service of process and enforce judgments based upon U.S.

Federal Securities Laws against the company and its non U.S.

resident officer

and director.

We are a Delaware corporation and, as

such, are subject to the jurisdiction of the State of Delaware and the United States courts for purposes of any lawsuit, action or proceeding

by investors herein.

An investor would have the ability to effect service of process in any action on the company within the United States.

Wenxian Fan, our sole officer and director, resides in China and substantially all of our assets are located in China.

a result, it may not be possible for investors to:

Potential future sales under Rule 144 may

depress the market price for the common stock.

In general, under SEC Rule

144, a person who has satisfied a minimum holding period of between six months to one-year, as well as meeting any other applicable requirements

of Rule 144, may thereafter sell such shares publicly.

Therefore, the possible sale of unregistered shares may, in the future, have a

depressive effect on the price of our common stock in the over-the-counter market.

We are not likely to pay cash dividends

in the foreseeable future.

We currently intend to retain

any future earnings for use in the operation and expansion of our business.

Accordingly, we do not expect to pay any cash dividends in

the foreseeable future, but will review this policy as circumstances dictate.

Should we determine to pay dividends in the future, our

ability to do so will depend upon the receipt of dividends or other payments from Universe Travel.

Universe Travel may, from time to

time, be subject to restrictions on its ability to make distributions to us, including restrictions on the conversion of RMB into U.S.

dollars or other hard currency and other regulatory restrictions.

investors may experience difficulties

in attempting to effect a service of process and enforce judgments based upon U.S.

Federal Securities Laws against the company and its

resident officer and director.

We are a Delaware corporation

and, as such, are subject to the jurisdiction of the State of Delaware and the United States courts for purposes of any lawsuit, action

or proceeding by investors herein.

An investor would have the ability to effect service of process in any action on the company within

the United States.

Wenxian Fan, our sole officer and director, resides in China and substantially all of our assets are

located in China.

As a result, it may not be possible for investors to:

Effect service of process within the United States against our non-U.S.

resident officers or directors;

court judgments based upon the civil liability provisions of the U.S.

court judgments based upon the civil liability provisions

federal securities laws against any of the above referenced foreign persons in the United States;

Enforce in foreign courts U.S.

court judgments based on the civil liability provisions of the U.S.

court judgments based on the civil liability

provisions of the U.S.

federal securities laws against the above foreign persons;

Bring an original action in foreign courts to enforce liabilities based upon the U.S.

Bring an original action in foreign courts to enforce liabilities based

upon the U.S.

federal securities laws against the above foreign persons.

claims that are common in the United States, including securities law class actions and fraud claims, generally are difficult to pursue

as a matter of law or practicality in China.

For example, in China, there are significant legal and other obstacles to obtaining information

needed for shareholder investigations or litigation outside China or otherwise with respect to foreign entities.

Shareholder claims that are

common in the United States, including securities law class actions and fraud claims, generally are difficult to pursue as a matter of

law or practicality in China.

For example, in China, there are significant legal and other obstacles to obtaining information needed

for shareholder investigations or litigation outside China or otherwise with respect to foreign entities.

Although the local authorities

5 unchanged sentences

or evidence collection activities within the territory of the PRC.

Accordingly, without the consent of the competent PRC securities

regulators and relevant authorities, no organization or individual may provide the documents and materials relating to securities business

activities to overseas parties.

Further, there is uncertainty as to whether PRC courts would (i) recognize or enforce judgments of United

States courts obtained against us or our director and officer predicated upon the civil liability provisions of the securities laws of

the United States or any state in the United States, or (ii) entertain original actions brought in each respective jurisdiction against

us or our director and officer predicated upon the securities laws of the United States or any state in the United States.

Accordingly, without the consent of the competent PRC securities regulators

and relevant authorities, no organization or individual may provide the documents and materials relating to securities business activities

to overseas parties.

Further, there is uncertainty as to whether PRC courts would (i) recognize or enforce judgments of United States

courts obtained against us or our director and officer predicated upon the civil liability provisions of the securities laws of the United

States or any state in the United States, or (ii) entertain original actions brought in each respective jurisdiction against us or our

director and officer predicated upon the securities laws of the United States or any state in the United States.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1A. Risk Factors